Home Business FG OPENS BID FOR  HIGHWAY MANAGEMENT INITIATIVE

FG OPENS BID FOR  HIGHWAY MANAGEMENT INITIATIVE

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The federal government has opened a bid for highway development management initiative (HDMI) with 16 companies emerging successful in the Value -Added Concession (VAC)

The Minister of works and housing, Mr. Babatunde Fashola while declaring open the bidding process in Abuja, said the government was seeking to unlock capital in excess of possibly a trillion naira if the programme succeeds into the nation’s road transport infrastructure assets

Fashola said the government was seeking to unlock capital in excess of possibly a trillion naira if the programme succeeds into the nation’s road transport infrastructure assets

The Minister further explained that the “HDMI is into two phases, the Value Added Concession ( VAC) which bid is now open , seeks to concession 12 economically viable road corridors to technically and financially capable private sector forms”.

The scope of the project according to the Minister stressed that the project will cover the expansion, realignment, rehabilitation and maintenance of existing road pavements, Bridges and construction of interchanges and pedestrian crossings.

Others are : Construction and operation of tolling facilities, installation of weight bridges, traffic systems physical patrol, provision of towing services, among other services.

He recalled that when the government of President Muhammadu Buhari assumed office in 2015, what was available to fund roads infrastructure in the country was only #18 billion .

” The government had raised SUKUK from 2017 to 2021 to spend on 76 roads, we initiated taxes projects scheme which has brought NNPC , Dangote, and others to contribute to constructing our roads infrastructure.

“We have also innovated and recovered some of our Commonwealth taken in this country overseas, President Buhari has recovered some of this money and put it into Presidential infrastructural development fund and that has also expanded the access to roads infrastructures.

” We are now at a very important type of PPP Highways access concession where 12 roads I believe are under construction and 17 or 18 are shortlisted entities” He said.

Fashola therefore, called on the procurement unit to ensure that due diligence was observed to enable all companies gain proper certification to avoid any hitch in the process.

Speaking earlier, the Acting Director -General Infrastructure Concession Regulatory Commission ( ICRC) Mr. Mike Ihiemi said the agency would continue to provide regulatory guidance for the success of the projects to ensure sustainability .

” It is worthy to note that the commission reviewed business activities on the highway development management initiative HDMI, which started last year, confirming that the roads are good economically and financially viable and for the project to move to the procurement phase.

” The Infrastructural Regulatory Commission at the end of the procurement phase will review and certify the fill business case (FBC) documents to enable the Minister to secure the approval of the Federal Executive Council” he said.

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