FG Inaugurates Contracts Management Team for Concession of Nine Highways

The federal government yesterday unveiled members of the Contracts Management Team (CMT) for the concession of selected roads in the country under the Highways Development and Management Initiative (HDMI).

Performing the task at the headquarters of the ministry of works in Abuja, the Minister, David Umahi, explained that the public/private initiative had been in the works for three years, stressing that it has now reached the critical stage of contract implementation.

The 12 roads initially planned for concession under the first phase of the initiative were: Benin–Asaba; Abuja– Lokoja; Kano–Katsina; Onitsha–Owerri–Aba; Shagamu–Benin; AbujaKeffi–Akwanga; Kano–Maiduguri; Lokoja–Benin; Enugu-Port Harcourt; Ilorin-Jebba; Lagos-Abeokuta; and Lagos-Badagry. However, only nine of the roads attained commercial close.

The main objective of the HDMI, which seeks to facilitate the development of parts of Nigeria's 35,000km of federal highway network, is to attract expertise and investment in the development of road infrastructure as well as maximise the use of assets along the Right of Way (RoW).

Umahi, who was represented by the Permanent Secretary in the ministry, Mahmuda Mamman, noted that he expects that the same hard work during the contract preparatory stages would be doubled during the current phase.

“It is PPP’s best practice to have a contract management team and you have been carefully selected based on your potential and the value you bring on board.

“You are, therefore, the administrative personnel responsible for liaising with the concessionaires on matters relating to the management of the contract,” Umahi stated.

He added that the idea of including senior executive management representation from each concessionaire on the team was to ensure seamless work and interactions.

Also speaking, the permanent secretary, Mamman, explained that the HDMI was created by the ministry to manage and develop the federal road networks.

Mamman stated that it was established, to amongst others, bring order, accountability, and profitable entrepreneurship to the operations, management, and maintenance of federal highways.

He noted that the initiative had attained very important milestones, with the most recent being the commercial close executed in May, 2023.

“Today’s event is therefore another significant milestone aimed at ensuring compliance with the provisions of the executed contract,” he stated.

He recalled that the concessionaires were required to incorporate Special Purpose Vehicles (SPVs) for the execution of the contract, accordingly.

The Head of Public Private Partnership (PPP), Mrs Abimbola Asein, listed representatives of the team as persons from: works ministry and ministry of justice, environment, Federal Road

Maintenance Agency, Infrastructure Concession Regulatory Commission, Bureau of Public Enterprise, Debt Management Office and ministry of finance.

Also speaking, the Director, Transport Infrastructure at the ICRC, Mohammed Bamali, said that the management team must ensure that parties keep strictly to the terms and conditions of the contracts.