Road Concession: FG to launch Procurement Portal to Ensure Competitiveness and Transparency

The Presidency has disclosed that the Highway Development Management Initiative, which is a scheme by the Federal Government to concession roads will launch a procurement portal on March 29th, 2021 to ensure competitiveness and to guarantee transparency.

 

 

 

The Presidency disclosed this in a statement on Wednesday, stating that the HDMI would be live on https://hdmi.worksandhousing.gov.ng   on March 29th.

 

 

HDMI is an effort of the FG to mobilize private capacity, resources, and entrepreneurship into the Nigerian highway sector; and convert roads from just social assets into assets of commercial opportunities.

 

 

“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

“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,” FG stated.

 

 

HDMI is made up of 2 categories namely 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 Right-Of-Way. While under the VAC the road pavement and entire right of way is concessioned for development and management by the concessionaire.

The VAC will be rolled out in phases. The First Phase will involve twelve roads and cover the 6 geo-political zones. The Projected Capital Investment of N1,134,690,048,000.76 and employment potentials of over 50,000 direct jobs and 200,000 indirect jobs.

The FG also disclosed that 5.6% of the 35,000 km (1963.24 km) of the  Federal road network, would be offered for concession.

The roads 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); and LAGOS – BADAGRY (79KM).

It was reported earlier this year that the FG received the Outline Business Case Certificate of Compliance for 12 pilot federal highways billed for concession.

Following the receipt of the Outline Business Case Certificate of Compliance, the FG stated that private individuals will be allowed to build, operate and maintain assets on some federal highways that are available for concession.