The Nigerian House of Representatives has launched an investigation into the procurement process and award of contract for the Lagos-Calabar Coastal Highway.
The decision by the House to initiate the probe comes after Hon. Dr. Austin Achado moved a motion at the plenary on Thursday. Achado stated that the Ministry of Works executed an Engineering Procurement Construction and Finance (EPC+F) contract in favor of Hitech Construction Company Nigeria Limited for the delivery of the 700km Lagos-Calabar Coastal Road and Rail Project.
The project, estimated at the rate of N4.329 billion per kilometer, is designed to use reinforced concrete technology for a carriage width of 59.7 meters, including 10 lanes, shoulders, rail, service ducts, street lights, drainages, and shore protection.
Achado noted that the project, with the prospect of providing easy access for movement of goods and services across the nation, has a financing structure that requires the federal government to provide 15 to 30 percent co-financing.
The private sector counterpart would provide the balance and toll the road when completed for a minimum period of 15 years to ensure full recovery of all debts and equity applied for the delivery of the project.
However, the procurement strategy adopted by the Ministry of Works for the award of the contract violated the Infrastructure Concession and Regulatory Commission Act 2005. Section 4 of the Act outlines that all approved infrastructure projects and contracts for Financing, Construction, and Maintenance must be advertised for Open Competitive Public Bid in at least three national dailies.
Section 5 of the Act further clarifies that any direct negotiations with only one contractor could be allowed only after exhausting the provisions of Section 4.
The House has called on the Minister of Works, Dave Umahi, the Minister of Finance, and the Attorney-General of the Federation and Minister of Justice to ensure that all guarantees and credit enhancement instruments for the Lagos-Calabar Coastal Road Project are sent to the National Assembly for approval.
The House has also resolved to set up an Ad-Hoc Committee to investigate the procurement process of the contract for the Lagos-Calabar Coastal Highway project and report to the House within four weeks.
In contrast, the pan-Yoruba socio-political group, Afenifere, has expressed its displeasure as to why the federal government seems adamant about proceeding with the 700 km Lagos-Calabar Coastal highway despite numerous complaints and objections.
The group advised the federal government to retreat and review its move because the $13 billion Lagos project is not only environmentally and economically destructive but also irrationally replaces the 1400km $12 billion Lagos-Calabar railway project along East-West Road, which was commissioned by both the Jonathan (2014) and Buhari (2021) governments.
The group further stated that the Lagos-Calabar Coastal Highway project must be re-examined, not only for breaching competitive tendering stipulations but also for contravening the Environmental Impact Assessment Act, as stipulated in EIA Decree No. 86 of 1992, which places the project type in Category 1 and affecting the natural environment, making an ESIA report mandatory before commencement.
The project, in essence, will affect the natural fauna and the coastal mangrove swamps that serve as natural barriers against tidal waves.
The 2021 Environmental Assessment Procedures and Charges would have taken six months from May 29th when this administration came to power to secure a genuine approval report, involving series of stakeholder’s meetings, multiple visits, and studies of the environment to be impacted by the highway.
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