Investigations has revealed that work is being delayed on the Lagos-Ibadan Expressway due to lack of fund. A source who revealed to a reporter, stated that there is high posibility that the federal government might hand over the road to a concessionaire.

The Nation reports that motorists will continue to face hardship on the ever-busy Lagos-Ibadan Expressway – no thanks to a cash crunch that is threatening the Federal Government’s plan to rebuild the road.

The Federal Government is considering a fresh concession to investors to make the N167billion project a reality.

In the proposed Public-Private Partnership (PPP), the government will collaborate with investors, the Infrastructure Bank, Julius Berger Plc and Reynolds Construction Company Limited(RCC).

About N23million has been voted in the 2014 Budget for the hiring of consultants on the PPP scheme.

The government has also allocated N5billion to the rehabilitation of the Lagos-Sagamu-Ibadan dual carriageway (Section 1) to make for the challenge it is facing on the reconstruction of the expressway.

The recourse to concession is being kept under wraps by the government in what a source described as a back-door approach.

The Federal Government, in November 2012, terminated the 25-year concession given to Dr. Wale Babalakin’s Bi-Courtney Limited for the construction and maintenance of the 105-kilometre Expressway.

The expressway was concessioned to Bi-Courtney in 2009 at N89.53 billion for 25 years.

Minister of Works Mike Onolememen said the agreement was revoked due to Bi-Courtney’s failure to adhere to its terms.

In June last year, the Federal Government re-awarded the reconstruction of the expressway to Julius Berger Plc and RCC.

Last July, President Goodluck Jonathan launched the reconstruction at N167billion with a completion timeline of 48 months.

But barely six months after the launch, the project has run into a hitch.

Neither the Federal Government nor the construction firms can source funds to execute the project.

A source, who spoke with our correspondent, said: “The government has no money to implement the project.

“There are so many competing demands for the government. And the construction firms, who has been re-awarded the project, cannot finance it without necessary legal backing granting the concession to them.

“The firms are also unprepared to take the risk to bear the cost without partnership or understanding with the government on how to recoup their investment.

“When the government re-awarded the contract to the two construction giants, it gave the impression that it would finance it wholesale.

“Even if the government now concedes the project to Julius Berger Plc and RCC, it would amount to a violation of the PPP law because there are laid down procedures.

“For instance, the project ought to be advertised for competitive bidding by the Infrastructure Concession Regulatory Commission (ICRC).

“So, the PPP for Lagos-Ibadan Expressway would have become legally flawed from the beginning.

“You can see that what the government should do first is what it is now doing. I think politics crept into the project and the government could not do its homework properly.”

Continue reading here: http://www.theparadigmng.com/?p=12205

Who is RCC?

^^^

freezy: The Federal Government is considering a fresh concession to investors to make the N167billion project a reality.
In the proposed Public-Private Partnership (PPP), the government will collaborate with investors, the Infrastructure Bank, Julius Berger Plc and Reynolds Construction Company Limited(RCC).

That was clearly stated in the article dude...

freezy: ^^^



That was clearly stated in the article dude...

I glaze over articles, who has time to read every word and letter? Thank you boss.

Who owns RCC, did i miss that too?

Neither the Federal Government nor the construction firms can source funds to execute the project.

And yet the president is planning to buy the 11th aircraft into the PAF.

https://www.nairaland.com/1583771/president-jonathan-11th-private-jet

Everyone was happy when Jonathan awarded the work some months ago. Now it's another story. Oga Jo, you'd better find the fund to build that road ooo. We don't want concession on that highway.
Thought Jonathan's guys on nairaland said construction had begun? What went wrong? Sincere9gerian, your attention is needed here oooo.

Where is InSinCere 9gerian?

and the former concessioning was revoked. The4 plan was to give it to their cohort afterall.

Odua group should just bid for the concessioning and let us get this road done once afterall.

If Odua group is given such right, i am assuring you, the road will be ready in 18months and it will be world class.

Effort should be made to contact Odua Group by all, to ensure they bid for the concessioning.

Let the drive begin by bombarding Odua Group with mails.

GEJ please privatise NRC too and let us have our regional fast rail system.

Konmight: Everyone was happy when Jonathan awarded the work some months ago. Now it's another story. Oga Jo, you'd better find the fund to build that road ooo. We don't want concession on that highway.
Thought Jonathan's guys on nairaland said construction had begun? What went wrong? Sincere9gerian, your attention is needed here oooo.

Do you know they had a carnival-like opening ceremony on that road? Jonathan is a joke.