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• Reveals how it’ll be funded
Minister of Works, David Umahi has revealed the cost of the Lagos-Calabar highway, saying the 700-kilometre (km) project would cost N4 billion per kilometre and not N22 billion as claimed by former vice president, Abubakar Atiku.
Umahi made the clarification during a live television interview.
Atiku had in a statement on April 7, said the project could cost the Federal Government N15.7 trillion, putting the approximation of each kilometre being built at N22.5 billion. He said his estimate was based on the N1.06 trillion earmarked for 47.47 kilometres (pilot phase) of the coastal highway by the minister.
But Umahi clarified that the cost of the project was lower than the estimated figure by Abubakar. “You will find out that our cost is N4 billion per kilometre, instead of the N8 billion per kilometre,” he said. The minister’s revelation translated to the infrastructural project which is 700 kilometres would consume N2.8 trillion.
He explained that the project would be completed within eight years, with the use of concrete pavement on the four-lane carriageway. The minister added that the project was awarded on a counter-funding basis and not on a Public-Private Partnership as claimed. He said the project was never envisaged by the present administration to be under public-private partnership (PPP).
“It has always been an engineering procurement construction (EPC) plan+finance. And so, under this kind of arrangement, like you have Abuja to Markudi, it is EPC+F, the federal government is required to pay certain counterpart funding. And so, in this particular project of Abuja to Makurdi, which is being handled by China Harbour, the federal government paid 50/15 percent counterpart funding. Then, you have also Makurdi to 9th Mile in Enugu state. And they are also paying 15 percent counterpart funding.”
He said the project has always been under EPC+F, and is to be constructed by the Hi-Tech Construction Company.
He said the coastal road has a total of 10 lanes and also has 23 shoulders, also known as breakdown lane, located by the verge on the outer side of a road, used for emergence stop.
“So, when you put the total concrete pavement we are doing, it is about 59. When you put the flexible pavements that was quoted, it is about 23 meters. And so, when you run the figures, you will now find out that under his calculation, it is giving over 19 percent per kilometre. Now, divide it by the 22 kilometres that they are doing, it is about 2.225 times a standard superhighway carriageway, which is 11.55.
“Whereas, what we are doing, if you divide it, it will be 5.167. When you now divide using our N1.067 trillion, you will get N4 billion per kilometre.
“If you go back to what he has quoted, you will get over N8 billion. So, using concrete, which should be more expensive because of the kind of terrain we have and using flexible pavement, which shouldn’t stand on the coastal road, you will find out that our cost is N4 billion per kilometre, instead of the N8 billion per kilometre.”
He said the cost has reduced despite the government’s current plan being an upgraded version of the road. Umahi added that there will be a negotiated counterpart funding of between 15 and 30 percent, to be funded by the federal government.
Umahi said despite the increasing costs of materials in the construction industry due to commodity price inflation and supply chain disruptions, the ministry is committed to prudence, promising to reveal the true cost.
