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FG to concession 10 roads, attracts N163bn investment



FG to concession 10 roads, attracts N163bn investment

Federal Government on Wednesday disclosed plans to concession 10 major highways in the country.

Minister of Works and Housing, Mr. Babatunde Fashola, dropped the hint when appeared before the National Assembly Joint Committee on Works on the project titled, “Highway Development and Management Initiative,”

Fashola said that the project is anchored on a private sector engagement, adding that investors will carry out the development and management of the road networks.

According to him, the first phase of the project will attract a capital investment of N163.323billion at a cost of about N16billion per each of the 10 roads.

The minister added that about 23, 322 jobs would be created in the first phase.

The roads are, Benin – Asaba, Abuja – Lokoja, Kaduna – Kano, Onitsha – Owerri – Aba, Shagamu -Benin, Abuja -Keffi – Akwanga, Kano – Maiduguri, Lokoja – Benin, Enugu -Port Harcourt, Ilorin – Jebba.

The project, he further explained would provide an avenue to mitigate paucity of funds, which had hindered roads development in the past.

He said the investors will provide streetlights, toll plazas, rest areas, and weighbridge stations.

FG to concession 10 roads, attracts N163bn investment

The minister further explained that the total length of the federal road network is 35,000km but that the total length of the proposed first phase routes is 2,275km

According to him, another 10 routes are being identified for the second phase of the Value Added Concession.

He said: “The Value Added Concession through the construction of rest areas will reduce fatigue on the highways thereby causing a reduction in accidents as the routes will be better management and maintained.

“Through the Value Added Concession, there will be job creation in communities that fall along the route which will bring about an increase in rural development.

“Improvement on weighbridge stations will reduce the incidence of roads having to bear loads above their design weight. This will improve the lifespan of the road pavement.”

On the capability of the would – be investors to handle the project Fashola said, applicants will be evaluated on their financial and technical competence.

The lawmakers commended the minister’s initiative.

They said it is a laudable project that will enhance development, provide security and jobs for young Nigerians.

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