FG takes major steps on highway concession, inaugurates CMT 12 roads

From Isaac Anumihe, Abuja

Minister of Works Engineer Dave Umahi has inaugurated the Contract Management Team (CMT) for the concession of 12 Federal Highways across the country. They include, Benin – Asaba; Abuja– Lokoja; Kano – Katsina; Onitsha – Owerri – Aba; Shagamu –Benin; Abuja -Keffi –Akwanga; Kano – Maiduguri; Lokoja – Benin; Enugu-Port Harcourt; Ilorin-Jebba; Lagos-Abeokuta; and Lagos-Badagry.

However, out of the 12 highways slated for concession, only nine of the roads attained commercial close
Inaugurating members of the Contract Management Team (CMT) which is under the Highways Development and Management Initiative (HDMI), the minister told the concessionaires to incorporate Special Purpose Vehicles (SPV) for the execution of the contracts for the nine highways which include, Benin – Asaba; Abuja– Lokoja; Kano – Katsina; Onitsha – Owerri – Aba; Shagamu –Benin; Abuja -Keffi –Akwanga; Kano – Maiduguri; Lokoja – Benin; Enugu-Port Harcourt; Ilorin-Jebba; Lagos-Abeokuta; and Lagos-Badagry.

However, Umahi, said, only nine of the roads attained commercial close.

“It is thus evident that the HDMI has attained very important milestones, with the most recent being the aforesaid commercial close executed on Friday, May 26, 2023.
Today’s event is therefore another significant milestone aimed at ensuring compliance with the provisions of the executed contract. As we are all aware, the concessionaires were required to incorporate Special Purpose Vehicles (SPV) for the execution of the contract, accordingly” Umahi, who was represented by the Permanent Secretary, Mamman Mamuda, stated.

Meanwhile, the HDMI was created by the Ministry to manage and develop the federal road networks, with the aim of attracting sustainable investment and funding in the development of road infrastructure and maximization of the use of assets along the right of way (RoW). The Initiative is expected to amongst others, bring order, accountability, and profitable entrepreneurship to the operations, management, and maintenance of federal highways.