Garri the 1st: Somebody is having restless days and sleepless nights on top Lagos matters....

Sincere 9gerian: I just read on todays ThisDay News report that the Lagos State Government plans to issue bonds totalling N87.5 billion before the end of the 2013 fiscal year to take over the concession rights of the Lekki-Epe Expressway from the Lekki Concession Company (LCC)
http://www.thisdaylive.com/articles/lekki-epe-road-lagos-to-raise-n87-5bn-to-acquire-concession-rights/157543/

History of the controversies and scams

The LCC was mandated under a 30-year Build, Operate and Transfer agreement to upgrade, expand and maintain the about 50-kilometre Lekki-Epe Expressway (Phase I), and construct another 20km of coastal road (Phase II) along the Lekki corridor.

Following expansion of some portions of Phase I and despite stiff opposition from residents, toll collection began at the first toll point called the Admiralty Plaza in 2011. Users of the expanded road have had to part with different amounts, depending on their class of vehicles. The amounts rage from N50 for motorcycles to N120 for saloon cars and tricycles; N150 for Sports Utility Vehicles, minibuses and pick-up trucks; N80 for commercial mini-buses; and N250 and N350 for light trucks and heavy trucks, and buses with two or more heavy axles, respectively.

It should be noted that Phase I of the Leki-Epe was already an existing road. All LCC had to do based on the agreement was expand and maintain that section. For over 3 years, LCC with the backing of Lagos State Govt, collected outrageous fees on the road after expanding some portions of Phase I.

Toll collection began on the road when LCC had not completed work on the road based on the concession agreement. The expansion of Phase I was unending while Phase II, which is construction of another 20km of road, had not commenced.

Now, after collecting tolls on the road for over 2 years, the state govt plans to bail out or buy back the concession agreement with another N87.5billion of tax payers money.

What we know of credible concession agreements is that the concessionaire completes the project and recoups its investment by charging user fees. But it appears concession agreements in Lagos State is an opportunity to loot the state treasury and exploit the people.

Worst still is the fact that both Fashola and Tinubu have been alleged as having stakes in the ownership of LCC.

Its all LOSES for the good people of Lagos State. The project is uncompleted (not up 30% of work has been done). Payment of outrageous tolls have been going on for over 2 years and counting. And now, over N87billion of public funds will be injected into the whole scam.

While Lagosians are counting their loses, LCC and their partners in criminality are reaping bountifully.

What is going on in Lagos is unprecedented fraud. It is corruption unlimited. Are there no people of good conscience in Lagos? All people of good conscience should condemn this EVIL.

software man:

When I saw this thread I honestly thought you were going to come up with something new. All you have dome is to rehash most of the nonsense and concocted lies you and your fellow PDP goons have being parroting on two similar thread on this forum.

You are not interested in discussion of issues and facts because a lot of that have being done on this topic.

In my view , what you come to this forum to do is propaganda to justify your pay to your paymasters.

NB: if you are interested in proper discussion of facts, there is a thread here you can join, but I am not going to dignify you or the shameless distortion of facts with any meaningful discussion of this topic.

Sincere 9gerian: I just read on todays ThisDay News report that the Lagos State Government plans to issue bonds totalling N87.5 billion before the end of the 2013 fiscal year to take over the concession rights of the Lekki-Epe Expressway from the Lekki Concession Company (LCC)
http://www.thisdaylive.com/articles/lekki-epe-road-lagos-to-raise-n87-5bn-to-acquire-concession-rights/157543/

History of the controversies and scams

The LCC was mandated under a 30-year Build, Operate and Transfer agreement to upgrade, expand and maintain the about 50-kilometre Lekki-Epe Expressway (Phase I), and construct another 20km of coastal road (Phase II) along the Lekki corridor.

Following expansion of some portions of Phase I and despite stiff opposition from residents, toll collection began at the first toll point called the Admiralty Plaza in 2011. Users of the expanded road have had to part with different amounts, depending on their class of vehicles. The amounts rage from N50 for motorcycles to N120 for saloon cars and tricycles; N150 for Sports Utility Vehicles, minibuses and pick-up trucks; N80 for commercial mini-buses; and N250 and N350 for light trucks and heavy trucks, and buses with two or more heavy axles, respectively.

It should be noted that Phase I of the Leki-Epe was already an existing road. All LCC had to do based on the agreement was expand and maintain that section. For over 3 years, LCC with the backing of Lagos State Govt, collected outrageous fees on the road after expanding some portions of Phase I.

Toll collection began on the road when LCC had not completed work on the road based on the concession agreement. The expansion of Phase I was unending while Phase II, which is construction of another 20km of road, had not commenced.

Now, after collecting tolls on the road for over 2 years, the state govt plans to bail out or buy back the concession agreement with another N87.5billion of tax payers money.

What we know of credible concession agreements is that the concessionaire completes the project and recoups its investment by charging user fees. But it appears concession agreements in Lagos State is an opportunity to loot the state treasury and exploit the people.

Worst still is the fact that both Fashola and Tinubu have been alleged as having stakes in the ownership of LCC.

Its all LOSES for the good people of Lagos State. The project is uncompleted (not up 30% of work has been done). Payment of outrageous tolls have been going on for over 2 years and counting. And now, over N87billion of public funds will be injected into the whole scam.

While Lagosians are counting their loses, LCC and their partners in criminality are reaping bountifully.

What is going on in Lagos is unprecedented fraud. It is corruption unlimited. Are there no people of good conscience in Lagos? All people of good conscience should condemn this EVIL.

solomon111: Propaganda?
Most of what he wrote there are verifiable.
Why are you not bothered about the corruption in lagos state,or is it only when it comes to the FG that you get interested?
Smh.
Una never ready.

werepeLeri: When its Fashola, some people just dont use their brain cells anymore, they go on the defensive.

Delafruita:
first,almost every concession agreement has a buy back option.pray tell when it became fraud to take advantage of a valid clause in a valid agreement.

secondly,OP either doesnt know what a bond is or he is deliberately playing to the gallery.he stated clearly within his post that the LASG intends to issues bonds to raise funds for the buy back and within the same post he claims the buy back will be a burden on taxpayers as if the tax funds will be used to finance the buy back.which is it?

Tunde ajani: .congratulations...you have just been awarded the the 2013 nobel prize in the field of wèrèology.the first black man to be so honoured.congrats[color=#990000][/color]

plaindealer: Borrow money to fund government


Borrow money to repaint airports


Borrow money to buy old and obsolete locomotive trains


Borrow money to build power stations


Borrow money expand power transmission lines

Oil theft is costing Nigeria billions/day

...meanwhile, Tompolo the protector of Nigeria's maritime waters and oil infrastructures just acquire 13 seater private jet..


Fresh air...oh I mean odious air all over the place...

Delafruita:
first,almost every concession agreement has a buy back option.pray tell when it became fraud to take advantage of a valid clause in a valid agreement.

secondly,OP either doesnt know what a bond is or he is deliberately playing to the gallery.he stated clearly within his post that the LASG intends to issues bonds to raise funds for the buy back and within the same post he claims the buy back will be a burden on taxpayers as if the tax funds will be used to finance the buy back.which is it?

taharqa2:

[s]What is this one saying?? What is a Bond if not Repackaged DEBT Notes? Abi you think those investors who would be paying billions of naira to buy the Bond Notes are Father Xmases? Who will buy back the Principal and the many compounded Intrests if not the tax payers tru the State Govt?

Gawd!!! Not just that you guys are such SHAMELESS HYPOCRITES but some of you are so Incredibly DUMB[/s]

Kamanda: No be #7.5b again?

Sincere 9gerian:
Its N87billion. Fashola and his "oga at the top", Tinubu, are raping Lagos from left, right and centre.

plaindealer:


How is this fraud when what we just bought is here on the ground and functioning while your Oga in abuja is indebting nigerians with phantom projects and ogbanje railway?

You have zero credibility here.... Shameless and incompetent Dullards...

Sincere 9gerian:
Its N87billion. Fashola and his "oga at the top", Tinubu, are raping Lagos from left, right and centre.

In his letter, the governor pointed out the need for the state government “to issue bonds totalling N87.5 billion in this year, instead of the N35 billion originally envisaged” under the 2013 fiscal regime.

He, therefore, explained the rationales behind a change in the state fiscal plan, which he ascribed to the need “to cover the shortfall in the internally generated revenue (IGR) and the delay in disbursement of the World Bank DPO II.”

The governor added that the plan to issue the N87.5 billion bonds was basically to finance the acquisition of the concession rights (of the Lekki-Epe expressway) and take control of the toll regime for the benefit of our citizens.”

Fashola said the state government would continue “t[b]o maintain its fiscal strategy designed to promote sustainable economic growth through the adoption of more accurate revenue estimates; gradual diversification of the state economy into new areas and provision of enabling investment climate in the state.”[/b]

He expressed the state government’s willingness, “to maintain sustainable public borrowing and efficient public debt management. Even though the resultant deficit has risen to N79.865 billion, it is still consistent with our fiscal policy of declining deficit when compared with the 2012 actual deficit, which was N89.45 billion.”

At the assembly’s plenary yesterday, the state Commissioner for Economic Planning and Budget, Mr. Ben Akabueze, said the decision to acquire the concession was for the interest of the residents of the state.

The commissioner explained that part of the plan by government for the review of the agreement with the LCC was to pay them off in order to take full possession of the road.

Akabueze said the government had already committed about N10 billion “to the funding of the project which took off in 2004 billed to cost N50 billion,” addingthat: “The state government will determine how much to be paid by motorists as toll on the road instead of allowing the concessionaire to fix prices when and how it likes.”

Also last night, the state government explained its position on the plan to buy-back the concession rights, attributing it to the agitation by the[size=18pt] concessionaire to jack up the tol[/size]l.

It also said the concession agreement with the concessionaire was not terminated as reported by a section of the media.

The state Attorney-General and Commissioner for Justice, Mr. Adeola Ipaye and his finance counterpart, Mr. Ayodele Gbeleyi, explained the state's decision in a statement they jointly signed yesterday.

According to the statement, the state government had neither terminated nor cancelled the concession agreement it entered into with the LCC to reconstruct and expand the expressway.

The statement said the state government "is engaged in buying back the rights pertaining to the concession ahead of the 30-year period stipulated in the Design, Build, Operate and Transfer (DBOT) Concession Agreement. This is to be achieved by purchasing all the shares in the LCC."

The statement explained that the state government came "to this decision to buy back the rights in the light of several developments clearly not envisaged in the 2006 Concession Agreement (which became effective in 2008).


"The project, given its pioneering nature, had some underlying assumptions and market indicators under which the transaction was concluded which have since drastically changed in a manner that it can no longer be sustained in its current form. Such include the devaluation of the Naira and costs of construction

"The LCC, which is the special purpose vehicle representing the investors, formally brought it to the attention of the state government that given the rapid rise in interest rates on local loans, and other cost parameters, it is compelled to raise tolls currently being charged at Toll Plaza One from N120.00 to N144.00 per car.

"The concessionaire also brought it to the attention of the state government, that as provided for under the agreement, tolling would have to commence at Toll Plaza Two.

"In addition, the concessionaire indicated that unless it realised more income from increased rates at Toll Plaza One and commence tolling at the same rate per Car at Toll Plaza Two, it would not be able to meet its commitments to investors in the project and continue to fund completion of the remaining sections of the road.

"The LCC stated that Toll Plaza Three, as contained in the agreement, must be built and tolls collected for the continued viability of the project. Under such circumstances, the state government felt obliged to buy out the interests of the concessionaire in advance of the hand-over date of 2038 under a mutual settlement option also expressly provided for in the Concession Agreement," the statement said.

The statement added that the decision to acquire the concession was taken after due consultation with all major stakeholders including the State House of Assembly based on various feedback and agitation the state government received from the concessionaire

plaindealer:


How is this fraud when what we just bought Is here on the ground and functioning while your Oga in abuja is indebting nigerians with phantom projects and ogbanje railway?

You have zero credibility here.... Shameless and incompetent Dullards...

taharqa2:

What is this one saying?? What is a Bond if not Repackaged DEBT Notes? Abi you think those investors who would be paying billions of naira to buy the Bond Notes are Father Xmases? Who will buy back the Principal and the many compounded Intrests if not the tax payers tru the State Govt?

Gawd!!! Not just that you guys are such SHAMELESS HYPOCRITES but some of you are so Incredibly DUMB!!!

Sincere 9gerian:
I dont have time for someone having emotional spasms. If you feel strongly about any other issue, kindly feel free to open another thread. This thread is about the fraud unlimited and scam perpetrated by Lagos State Govt and its criminal partners in the Lekki-Epe road concession

Delafruita:
cant you comment without resorting to derogatory remarks?

what is a bond? its a debt instrument which could be medium term or long term

what is the plan of the LASG? issue longterm fixed rate bonds to raise money to finish the road,pay out running and redemption yield from toll collection

who gains?users of the road because toll will remain constant since the LASG doesnt have profit as its motive...the investors in the bond because their investment will bear fruit

Sincere 9gerian: I just read on todays ThisDay News report that the Lagos State Government plans to issue bonds totalling N87.5 billion before the end of the 2013 fiscal year to take over the concession rights of the Lekki-Epe Expressway from the Lekki Concession Company (LCC)
http://www.thisdaylive.com/articles/lekki-epe-road-lagos-to-raise-n87-5bn-to-acquire-concession-rights/157543/

History of the controversies and scams

The LCC was mandated under a 30-year Build, Operate and Transfer agreement to upgrade, expand and maintain the about 50-kilometre Lekki-Epe Expressway (Phase I), and construct another 20km of coastal road (Phase II) along the Lekki corridor.

Following expansion of some portions of Phase I and despite stiff opposition from residents, toll collection began at the first toll point called the Admiralty Plaza in 2011. Users of the expanded road have had to part with different amounts, depending on their class of vehicles. The amounts rage from N50 for motorcycles to N120 for saloon cars and tricycles; N150 for Sports Utility Vehicles, minibuses and pick-up trucks; N80 for commercial mini-buses; and N250 and N350 for light trucks and heavy trucks, and buses with two or more heavy axles, respectively.

It should be noted that Phase I of the Leki-Epe was already an existing road. All LCC had to do based on the agreement was expand and maintain that section. For over 3 years, LCC with the backing of Lagos State Govt, collected outrageous fees on the road after expanding some portions of Phase I.

Toll collection began on the road when LCC had not completed work on the road based on the concession agreement. The expansion of Phase I was unending while Phase II, which is construction of another 20km of road, had not commenced.

Now, after collecting tolls on the road for over 2 years, the state govt plans to bail out or buy back the concession agreement with another N87.5billion of tax payers money.

What we know of credible concession agreements is that the concessionaire completes the project and recoups its investment by charging user fees. But it appears concession agreements in Lagos State is an opportunity to loot the state treasury and exploit the people.

Worst still is the fact that both Fashola and Tinubu have been alleged as having stakes in the ownership of LCC.

Its all LOSES for the good people of Lagos State. The project is uncompleted (not up 30% of work has been done). Payment of outrageous tolls have been going on for over 2 years and counting. And now, over N87billion of public funds will be injected into the whole scam.

While Lagosians are counting their loses, LCC and their partners in criminality are reaping bountifully.

What is going on in Lagos is unprecedented fraud. It is corruption unlimited. Are there no people of good conscience in Lagos? All people of good conscience should condemn this EVIL.