Works Minister, Umahi Inaugurates Contract Management Team for Value-Added Concession Category of Highways Development & Management Initiative
Minister of Works, Engr. David Umahi, has inaugurated the Contract Management Team (CMT) for the Value-Added Concession Category (VAC) of the Highways Development & Management Initiative in Abuja.
In his address, the minister said it has been three years of hard work by the Project Delivery Team (PDT) members of the Highways Development & Management Initiative (HDMI), most of whom are now being transmuted as members of the Contract Management Team (CMT).
“We expect that the same hard work you brought to bear on the Contract Preparatory Stages would be doubled at this critical stage of Contract Implementation.
“It is PPP’s best practice to have a Contract Management Team (CMT) and you have been carefully selected based on your potential and the value you bring on board. You are, therefore, the administrative personnel responsible for liaising with the Concessionaires on matters relating to the management of the Contract,” he said.
Umahi thanked the Infrastructure Concession Regulatory Commission (ICRC) for the planned Two-day training and interactive session for members of the CMT on effective & efficient management and monitoring of the implementation of the contracts, adding that this is an invaluable contribution towards preparing the CMT for the task ahead.
He explained that the idea of including Senior Executive Management representation from each Concessionaire on the CMT is to ensure seamless workings and interactions.
He, therefore, advised the Concessionaires to accord the CMT, of which they are already a part of, the maximum cooperation that is needed.
As we are already aware, he added, that the Value for Money (VfM) generated through PPPs depends on the quality of the private partner and the government’s contract management systems and teams.
Umahi charged the Government side to accord this assignment the utmost attention it deserves and not be in the erroneous belief that these concessions (contract) will be self-regulating and self-reporting.
In his words: “Your terms of reference (TOR) will nonetheless be explained to you in due course, and it will be tied to the task of liaising with the Concessionaire on matters relating to the management of the Contract. You are therefore required to be proactive and guide these contracts to Financial Close and Project Implementation, accordingly.”
The minister formally inaugurated the Contract Management Team (CMT) for the Nine (9) concessioned Value-Added Concession (VAC) road corridors under the pilot phase of the Highways Development & Management Initiative (HDMI).
Earlier in his welcome remarks, the Permanent Secretary, Federal Ministry of Works & Housing (FMWH) Mahmuda Mamman highlighted that 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, he said, is expected to amongst others, bring order, accountability, and profitable entrepreneurship to the operations, management, and maintenance of Federal Highways.
According to the permanent Secretary, “the following Twelve (12) roads were initially planned for concession under the first phase of the Initiative, namely: 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, only Nine (9) of the roads attained Commercial Close.”
It is thus evident that the HDMI has attained very important milestones, he stressed, with the most recent being the aforesaid Commercial Close executed on Friday, 26th May 2023, while today’s event is therefore another significant milestone aimed at ensuring compliance with the provisions of the executed contract.
He affirmed that the Concessionaires were required to incorporate Special Purpose Vehicles (SPV) for the execution of the contract,
Mahmuda thanked the Director-General of the Infrastructure Concession Regulatory Commission (ICRC) for the robust institutional guidance consistently provided throughout the transaction process, adding “With our collective effort, we are sure to bequeath a worthy legacy for PPP practices in the country.”
Accordingly, he listed the incorporated SPVs for each corridor are as follows:
