Lagos-Calabar Coastal Highway: Umahi replies Atiku, says project to gulp N15trn

• Project is not a Public Private Partnership (PPP) but rather an Engineering Procurement and Construction (EPC+) structure-Minister.

The Minister of Works, Sen. Engr. David Umahi has responded to the recently raised several questions regarding the Lagos-Calabar coastal road contract award by Atiku Abubakar, the candidate of the PDP in the 2023 presidential election, adding that the 700 km Lagos-Calabar coastal road will be constructed at N15 trillion.

Umahi stated this in response to the controversy trailing the award of the road contract at a press briefing/stakeholders meeting on Lagos-Coastal Highway projects, at Eko Hotel, on Thursday in Lagos.

The Minister stated that a kilometre of the road would cost N4 billion.

He also faulted Atiku’s position on the project because the former Vice President used the design done by the Niger Delta Development Commission (NDDC) to arrive at the estimate.

According to the minister, Tinubu administration is using a new design for the project, adding “the NDDC plan is a four-lane highway without a design for a train station; however, the current design is a 10-lane highway.”

Umahi stated that the project cost is N15 trillion to be completed within eight years.

“So you have to ask now what was there to be constructed. And what was there to be constructed is the only available design from NDDC. They had designed the entire 700 km, but we are not following precisely that pattern or right of way. We have a different modification. The original design had two carriageways on each side of the road with four lanes.

“And in the middle, they did not provide for the train track. It’s just going to be a water-collecting basin. But the coastal road we are constructing has a total of 10 lanes, you know, not only that it has a total of 10 lanes, it also has what we called shoulders.

“And the total shoulders can be put at about 23 metres. So, when you put the total concrete pavement, we are doing, it’s about 59 metres. When you put the total flexible pavement that he quoted, it’s about 23 metres.” he explained.

Engr. Umahi stated further: “You will find out that our cost is N4bn instead of the N8billion claimed by the former vice president.”

The minister said each kilometre of the coastal road would cost N4bn , adding that the government’s prudence made that possible.

Speaking on the funding structure, Umahi declared that the project is not a Public Private Partnership (PPP) but rather an Engineering Procurement and Construction (EPC+) structure, which means that the federal government must produce counterpart funding.

He disclosed that the negotiations are ongoing regarding FG’s counterpart funding, which he projected would be between 15 and 30 per cent.

According to the minister, the project was carried out under competitive bidding under the procurement act, stressing that HITECH has the pedigree for fighting ocean surge while referring to the ocean surge that occurred at Ikoyi.

He pointed out the Lagos-Calabar coastal highway will be done in session, with the first session completion in 36 months and three other sessions will be 36 months respectively, adding “We are looking at eight years in the life tenure of Mr President Bola Tinubu.”

“You know, there are other projects not awarded by me that are also going for about N4 billion per kilometre.

“So, I will pride myself, to the glory of God, that this project is the most prudent project that I’m starting. Other projects I made, we are reviewing, we are fighting, and we’re trying to review, the cost,” he explained.

The minister disclosed that the federal government would get back the money it invested within 15 years by tolling cars for N1500, trucks for N5000 and N3000 for average charges on the coastal highway.

He also described Atiku’s analysis of the coastal projects as a gross misrepresentation of facts and figures and a ploy to “mislead Nigerians by darkening counsel without knowledge.”

Recall, the former vice president and the candidate of the PDP in the 2023 presidential election, Atiku Abubakar, recently raised several questions regarding the contract award.

Atiku in a series of statements, specifically raised concerns about the cost of the project, the lack of competitive bidding and opacity in the funding structure of the project.

In one of the statements, Atiku said Hitech, a company owned by Gilbert Chagoury, an associate of President Bola Tinubu, was awarded the project without competitive bids.

He added that the government lied that the project would be a Public Private Partnership (PPP), with Hitech providing all the funds.

Atiku also estimated that the project, excluding the designed train tracks in the middle, would cost N8 billion per kilometre.

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