FG Launches Procurement e-Portal For Concession Of 12 Highways

FUNSHO AROGUNDADE

The Federal Government has declared opened an e-portal to mark the final commencement of the procurement process for the concession of 12 federal highways being used as a pilot project under its already launched Highway Development and Management Initiative (HDMI).

The Minister of Works and Housing, Mr. Babatunde Raji Fashola, SAN announced this Tuesday during a Ministerial Notification on the Commencement of the Procurement Process of the Highway Development and Management Initiative (HDMI) held at the Conference Hall of The Ministry of Works and Housing in Abuja.

The initiative is an indigenous land value capture scheme conceived by the Ministry of Works and Housing to develop Nigeria’s network of federal highway corridors and boost economic development along the right of way.

According to him, the HDMI seeks to mobilise private capacity, resources, and entrepreneurship into the Nigerian highway sector; and hopefully convert roads from just social assets into assets of commercial opportunities and enterprise.

He explained that the initiative is categorized into the Value-added Concessions (VAC) and the Unbundled Assets Approvals (UAA).

“The UAA provides an opportunity for small businesses to take advantage of the commercial opportunities that are available along the ROW while under the VAC the road pavement and entire right of way are concessioned for development and management by the concessionaire,” he said.

The VAC will be rolled out in phases. The first phase of the HDMI Project will cover the full reconstruction and expansion of 12 Major Federal Highways Across All Six-Geopolitical Zones Of The Nation.

They are: BENIN – ASABA (125KM); ABUJA – LOKOJA (193KM); KANO – KATSINA (150KM); ONITSHA – OWERRI – ABA (161KM); SHAGAMU – BENIN (258KM); ABUJA – KEFFI – AKWANGA (122KM); KANO – MAIDUGURI (lot 1 Kano-Shuari 100KM; lot 2 Potiskum-Damaturu 96.24KM); LOKOJA – BENIN (270KM); ENUGU – PORT HARCOURT (200KM); ILORIN – JEBBA (129KM); LAGOS – OTA – ABEOKUTA (80KM); LAGOS – BADAGRY (79KM).

The first phase totalling 1963.24 km which is 5.6% of the 35,000 km Federal road network.

Fashola noted that not only has the 12 roads’ right of way been fully gazetted, the Infrastructure Concession Regulatory Commission (ICRC), as a regulatory body for concessions of this nature, has also issued the Certificate of Compliance for the Outline Business Case that is necessary to commence the process.

He disclosed that the Federal Government projected an initial capital investment of N1,134,690,048,000.76 on the initiative and employment potentials of over 50,000 direct jobs and 200,000 indirect jobs.

The minister said to ensure competitiveness and to guarantee transparency, a procurement portal has been developed to serve as the interface with the public and manage the HDMI from Procurement to Implementation.

The HDMI portal: https://hdmi.worksandhousing.gov.ng and will open on Monday, 29th March, 2021.

According to the Minister of Works and Housing, all transactions will be done through this portal.

“No personal inquiry will be entertained by any official or staff of Federal Ministry of Works and Housing,” Fashola said.