The federal government of Nigeria is set to officially commence the procurement process for concessioning of 12 roads under the Highway Development and Management Initiative (HDMI). This is after Ministry of Works and Housing received the certificate of compliance
The Nigeria roads include: Benin-Asaba (125km), Abuja-Lokoja (193km), Kano-Katsina (150km), Onitsha-Owerri-Aba (161km), Shagamu-Benin (258km), Abuja-Keffi-Akwanga (122km), Kano-Shuari (100km), Potiskum-Damaturu (96.24km), Lokoja-Benin (270km), Enugu-Port Harcourt (200km), Ilorin-Jebba (129km), Lagos-Otta-Abeokuta (80km), and Lagos-Badagry-Seme (79km).
Development of Nigeria’s federal highway network
According to the Minister of Works and Housing, Mr. Babatunde Fashola, the initiative would facilitate further development of Nigeria’s federal highway network by attracting investment to improve efficiency and accountability in the maintenance of all assets within the Right of Way (RoW) on the highways.
“The HDMI is a home-grown idea that would deliver a safer and enjoyable travel experience, shorten travel time, reduce cost and stimulate commercial activities,” said the minister at the official handover of the certificate of compliance by the Infrastructure Concession Regulatory Commission’s (ICRC).
He further added that the government’s infrastructure development plan was being driven by the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme Order of 2018, the Presidential Infrastructure Development Fund (PIDF) being managed by the Nigeria Sovereign Investment Authority (NSIA) and the SUKUK Fund.
“The HDMI is an indigenous land value capture scheme conceived by the ministry to develop Nigeria’s network of federal highway corridors and boost economic development along the right of way,” said the minister.
According to him, it would be executed in two parts comprising Value Added Concession (VAC) and Unbundled Assets Approval (UAA). “Apart from infrastructure and assets development, thousands of jobs will be created for Nigerians as the initiative will open up the highway economy with opportunities in various economic activities. These include fabrication of gantries and directional signage with advertising opportunities, towing van operations and auto repair stations, operation of rest areas and emergency services, among others,” he added.
“When fully operational, road users will now enjoy first-class facilities on federal highways with directional signage, well-equipped rest areas, round-the-clock security patrol, and ambulance services for emergencies,” affirmed the minister.