The Federal Government has revealed that it is expecting over N1 trillion investments from the private sector for the development and maintenance of the various highways earmarked for concessioning under the Highway Development Management Initiative (HDMI).
This is as the expected funds from the private investors would reduce the financial burden of maintaining and rehabilitating the concessioned highway roads and free up funds for the Federal Government to meet other obligations.
According to a report by Punch, a document from the Federal Ministry of Works and Housing on how the HDMI would be of benefit to Nigeria stated that the huge funds expected from the private sector would help drive the initiative that would see to the concession of the highways.
It was gathered in Abuja on Wednesday that with the funds from private investors, the government would be free of the burden of maintaining and rehabilitating the identified roads.
What the HDMI document is saying
On benefits of the initiative, the HDMI document partly reads, “Huge injection of private sector investment into the economy with over N1tn expected for the development and maintenance of the 12 routes in the first phase.
“Government is free of the burden of maintaining and rehabilitating roads. Funds can be channelled to other developmental projects.”
The document states that the impact of such investment on the economy was huge as it would trigger many activities to stimulate the highway economy across the country.
What you should know
- It can be recalled that the Federal Government had on January 29, 2021, said it would receive the Outline Business Case Certificate of Compliance for 12 pilot federal highways billed for concession.
- The certificate was received on behalf of the federal government by the Minister of Works and Housing, Babatunde Fashola, who confirmed that the government was set to commence the procurement process for highway concession.
- The 12 Federal Highways that were slated for concession in the pilot phase include Benin-Asaba, Abuja-Lokoja, Kano-Katsina, Onitsha-Owerri, Shagamu-Benin and Abuja-Keffi-Akwanga.
- Others are Kano-Shuari and Potiskum-Damaturu, Lokoja-Benin, Enugu-Port Harcourt, Ilorin-Jebba, Lagos-Ota-Abeokuta, and Lagos-Badagry-Seme border.
- The concession of the roads might also signify the return of toll gates as concessionaires would have to recoup their investments.