Reps To Probe Lagos-Calabar Coastal highway Project
The House of Representatives on Thursday resolved to probe the ongoing N15tn Lagos-Calabar Coastal Highway project.
The resolution of the House followed the adoption of a motion of urgent public importance moved during plenary by the member representing Gwer East/Gwer West Federal Constituency, Benue State, Mr Austin Achado.
The House also resolved to summon the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, SAN; the Minister of Finance, Wale Edun and his works counterpart, David Umahi, to shed more light on the project.`
But the Ministry of Works defended the project, saying it followed due process. It also said the House of Representatives members had pledged support for the project.
A 700-kilometre turnpike infrastructure, the coastal highway project has attracted commendation and condemnation since the Bola Tinubu administration approved it in February.
The 10-lane coastal road was designed to connect Lagos to Cross River, passing through Ogun, Ondo, Delta, Bayelsa, Rivers, and Akwa Ibom states before culminating in Calabar, the Cross River State capital.
The project gained traction under the administrations of Goodluck Jonathan and Muhammadu Buhari but could not commence.
Under Jonathan, the highway was to cost $12bn, and $11.1bn under Buhari. It was subsequently expanded from a four-lane double carriageway to a 10-lane highway.
Minister of Works, Dave Umahi, disclosed that the construction of the coastal road was expected to span eight years and cost N4bn per kilometre.
So far, the minister disclosed that the Federal Executive Council had approved and released N1.06tn for the contractor for the pilot phase of the construction, which started at the Eko Atlantic City and will terminate at Lekki Deep Seaport.
Although many have lauded the ambitious project, others faulted the process of the award of the contract that led to the emergence of Hitech Construction Company Nigeria Limited as the preferred contractor.
“The guarantees issued to cover the debt financing component of this project do not have the approval of this National Assembly.”
The lawmaker noted that the Federal Ministry of Works had executed an engineering procurement construction finance contract in favour of Hitech Construction Company Nigeria Limited for the delivery of the coastal road and rail project.
He explained that the project was estimated at N4.33bn per kilometre using reinforced concrete technology for a carriage width of 59.7 metres, to include 10 lanes, shoulders and rail with additional designs of service ducts, street lights, drainages and shore protection.
Achado further said the project had the prospect of providing easy access for the movement of goods and services across the nation, and has a financing structure, as announced by the works minister, “Which requires the Federal Government to provide 15 per cent to 30 per cent co-financing, while the private sector counterpart will provide the balance, and toll the road when completed for a minimum period of 15 years, to ensure full recovery of all debts and equity applied for the delivery of the project.”
Regrettably, Achado maintained that the procurement strategy of the project might have violated section 40(2) of the Public Procurement Act 2007.
The section, he added, required that where a procuring authority adopts a restrictive tendering approach, “It should be on the basis that the said goods and services are available only from a limited number of suppliers and contractors and as such, tenders shall be invited
