Lagos cancels Lekki-Epe Expressway concession

AUGUST 28, 2013 BY AKINPELU DADA AND RASHEED BISIRIYU



Controversy surrounding the management of the Lekki-Epe Expressway took a new turn on Tuesday as the Lagos State Government announced the termination of its concession agreement with the Lekki Concession Company.

Already, the state House of Assembly has approved a supplementary budget of N7.5bn to enable the government to fund the acquisition of the existing concession right of the expressway.

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

But the firm and the state government came under severe attacks when they introduced what the residents considered as high tolls on the road in 2011 after significant progress was made in the first phase.

The decision of the state government to terminate the concession agreement, it was learnt, followed the lawmakers’ approval of the supplementary budget, which gave it the right to acquire the existing concession rights and toll revenue benefits held by the concessionaire.

Governor Babatunde Fashola had in a supplementary budget proposal letter to the state House of Assembly dated August 19, 2013, requested it to amend this year’s budget owing to unforeseen developments in terms of the state’s internally generated revenue.

Fashola had said, “The proposal for further amendment is largely predicated on the need to fund the acquisition of the existing concession, right and toll revenue benefit held by the Lekki Concession Company, the concessionaire for the Eti-Osa-Lekki-Epe Expressway. This will effectively accelerate the transfer of ownership of the road to the state, leaving the state with wider policy options with regards to that important infrastructure.

“In order to address these issues, we have proposed a two-prong approach namely: re-ordering some expenditure provisions and also directing supplementation of the year 2013 budget. This will entail an increase in the overall budget size by N7.5bn. This is against the background of a projected shortfall of N22.5bn in budgeted internally generated revenues, which now need to be covered by the additional borrowings.”

The Assembly gave its approval to the request on Tuesday in a proposal read on the floor by the Clerk, Mr. Ganiyu Abiru.

The commissioners for Budget and Economic Planning, Mr. Ben Akabueze; Finance, Mr. Ayo Gbeleyi; and Works and Infrastructure, Mr. Obafemi Hamzat, were at the House to defend the proposal.

Following the latest amendment, the revised budget has thus increased from N499.6bn to N507.105bn.

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.

Fees are currently being collected at the first toll point called the Admiralty Plaza.

The Conservation Plaza was built about 10km away from the first tolling point bewteeen the Chevron Drive and Oluwanisola Estate, but the collection of tolls has not started.

A human rights lawyer, Mr. Ebun Olu-Adegboruwa, took the matter to court to stop the LCC and the state government from enforcing the toll collection until the 10km alternative route was constructed for those that might not use the road.

Calls and text messages to the mobile phone number of the Commissioner for Information and Strategy, Mr. Lateef Ibirogba, were ignored; while the Special Adviser on Media to the Governor, Mr. Hakeem Bello, said he had yet to get the details and promised to call back when he did, but never got back.

Calls put through to officials of LCC were unanswered, while text messages sent to them were not responded to.

Source:http://www.punchng.com/news/lagos-cancels-lekki-epe-expressway-concession/

Interesting...I just hope they manage the situation perfectly and put and end to tolling. In other news, I finally cracked this "first to comment challenge"

Could this be a huge relief to those living in that area?

Really!! Can lagos state goverment manage the toll collection effeciently? We are watching..

This is not a good idea. For one, The urgent response of the LCC to accidents, to people in distress along that road is nothing short of remarkable in this Nigeria of ours.

I can only imagine the assured decay of the facilities that will follow the termination. Anyway, it is obvious that somebody has been making some calculations, and the amount calculated has proved irresistible...

Fantastic news. This is the real Eko oni baje! People shout without ceasing and the government responds, that's democracy. APC would have lost a huge chunk of votes from residents of that axis. Final task should be the demolition of the toll gates.

If the LASG continues to collect tolls it could be just as counter productive as allowing LCC continue. Government has no business in business as they say

This smacks of incompetence, ineptitude, inaptitude and cluelessness on the part of Fashola and the Lagos State Govt.

Fashola should have known that you dont award or go ahead with a concession agreement without reaching a financial close on the project.

Yes the Yar Adua govt made the same mistake with Lagos-Ibadan road but that was in the past. We cannot continue in the incompetence and cluelessness of the past and expect progress.

Worse still is the fact that the people of that area have been raped, financially, through the failed concession agreement. Yeye!

This seems to be a good idea. What happens to the tolls thereafter? Will it be reduced or wiped off totally. There is need for more information on this issue, hope Naptu comes to shed more light

GHEN GHEN!! Fashola don vex.lol. This is a splendid development! As far as I can tell (i may be wrong though), this is a direct attempt by Fashola to free Lagosians (and he himself especially) from Tinubu's greedy clutches.

It won't come for free obviously tho. A significant portion of the extra billions Fashola is seeking for in the budget will of course go to LCC and by extension Tinubu. But its better to end the slavery now abeg. Opuiyo Oforiokuma can happily cash out and probably start entertaining thoughts of governing Bayelsa (or where is he from) in 2020.

freedom@last:
This is not a good idea. For one, The urgent response of the LCC to accidents, to people in distress along that road is nothing short of remarkable in this Nigeria of ours.

I can only imagine the assured decay of the facilities that will follow the termination. Anyway, it is obvious that somebody has been making some calculations, and the amount calculated has proved irresistible...

Its funny your username is Freedom@last coz that is EXACTLY what this move connotes to Lagosians especially those who kicked against the unholy and callous alliance between LCC & LASG which was largely borne out of unimaginable greed on Tinubu's part.

I woke up in a new Buggati

BarryX: Nothing new really
I can sense the state government is playing jealous here -- those LCC guys are making real dough with that tolling..
More like I can't sit back and you make money under my nose.

BTW that's if they're not the real owners of LCC itself.
I care less sha

Not really, LCC is actually owned by Tinubu and Fashola via their Surrogates, what happens is that the Eko Atlantic City, which they own majority of, is a better investment for them, so they are looking for a way to get more funding from state funds to push the construction, so it becomes necessary for them to let go the Toll in exchange for the billions and use the billions on the Eko Atlantic Project and Free Trade Zone project, its all thievery.

My Time Shall Come.

N507billion Budget , yet a 50Km road with toll gates at every 10Km could still not be completed 8 years after?
Even with an already huge debt profile of 610 billion , Bros Fashola just announced he will have to borrow more.

Lagosians can you guys boast of 500billion infrastructure X 14 years? By the time Fashola and Tinubu finish with you guys, your unborn generation will still be paying these huge debt, don't forget unlike South South states that depend on oil for their allocations , Lagos depends on businesses due to its strategic position as a major entry point into Nigeria, and with the diversification of these ports, like proposed Ibaka seaport and now Akanu Ibiam international airport , Lagos may have to share patronage with these cities hence reduction in revenue . So how does Fashola intend to repay 610 billion (and still counting) debt??

This a question sensible Lagosians should ask

I thought it belong to tinubu

When are they going to stop toll collection ?
Morever this show that Tinubu does not own LCC

Billyonaire:

Not really, LCC is actually owned by Tinubu and Fashola via their Surrogates, what happens is that the Eko Atlantic City, which they own majority of, is a better investment for them, so they are looking for a way to get more funding from state funds to push the construction, so it becomes necessary for them to let go the Toll in exchange for the billions and use the billions on the Eko Atlantic Project and Free Trade Zone project, its all thievery.

My Time Shall Come.

iif you check your records LCC owned by the chagouries has been in the Nigerian construction industry
since the early nineties.

A concession arrangement involves a company using its own money to develop infrastru
cture and then recover its money over a given period of time after which the infrastructure reverts back to the govt. Usually with these contracts is what is called a buy back option which apparently Lagos state is now trying to exercise for wider policy option.

Interestingly, the PDP controlled federal govt has failed severally in every since concession projects they ever attempted and I can understand how very ignorant and misguided people who lack the capacity to make meaningful contribution to POLICY discussions end up coming here to expose their crass ignoramce and stupidity.

t-something:
N507billion Budget , yet a 50Km road with toll gates at every 10Km could still not be completed 8 years after?
Even with an already huge debt profile of 610 billion , Bros Fashola just announced he will have to borrow more.

Lagosians can you guys boast of 500billion infrastructure X 14 years? By the time Fashola and Tinubu finish with you guys, your unborn generation will still be paying these huge debt, don't forget unlike South South states that depend on oil for their allocations , Lagos depends on businesses due to its strategic position as a major entry point into Nigeria, and with the diversification of these ports, like proposed Ibaka seaport and now Akanu Ibiam international airport , Lagos may have to share patronage with these cities hence reduction in revenue . So how does Fashola intend to repay 610 billion (and still counting) debt??

This a question sensible Lagosians should ask

first, you show complete ignorance or deliberate mischief right of the bat by not understanding what budgets are and what a concession arrangement is.
basically, the big idea behind the lekki concession is to transit from infrastructural development to investment. of is the concessiomaire's money that builds the infrastructure and manages it for a given period of time to recover its money and make some profit. there is no govt money involved and therefore no budget..

the second incredibly stupid part of your post is the implication that the entire budget of Lagos state for the year was meant fto build or buy back the lekki expressway.
The actual figure for the buy back that the govt is seeking a supplementary budget for , even when clearly stated , is invisible to you.

please let us have a proper discussion on polo y matters and stop all this obsession with tinubu. it seems this obsession is beclouding your thinking and making you write meaningless jargon.

The govt should concession the road the a better concessionaire because Govt will make rubbish of the slow progress the LCC has made ...but on serious note Govt should learn how to respect agreements it has with private firms no matter what

Billyonaire:

Not really, LCC is actually owned by Tinubu and Fashola via their Surrogates, what happens is that the Eko Atlantic City, which they own majority of, is a better investment for them, so they are looking for a way to get more funding from state funds to push the construction, so it becomes necessary for them to let go the Toll in exchange for the billions and use the billions on the Eko Atlantic Project and Free Trade Zone project, its all thievery.

My Time Shall Come.

this is probably the most idiotic thinking I have seen for a long time.

TINUBU and FASHOLA owns LCC an imternational construction company in existence for years.

they then borrowed money from foreign banks to build an infrastructure where by it take a minimum of ten to fifteen years to recover their money.

How can anyone be this stupid?

for your infor, ation, the elo Atlantic city is 100 % percent private sector driven.

Sincere 9gerian: This smacks of incompetence, ineptitude, inaptitude and cluelessness on the part of Fashola and the Lagos State Govt.

Fashola should have known that you dont award or go ahead with a concession agreement without reaching a financial close on the project.

Yes the Yar Adua govt made the same mistake with Lagos-Ibadan road but that was in the past. We cannot continue in the incompetence and cluelessness of the past and expect progress.

Worse still is the fact that the people of that area have been raped, financially, through the failed concession agreement. Yeye!

honestly I can't believe you can post this kind of nonsense. Please read the thread you are responding to. financial close on what? it is a buyback we are talking about here.

The PDP govts from obj to Jonathan screwed up on one comcession arrangement to the other and you want to talk about incompetence where it does not apply.

Is it Fashola who awarded the cntract or his predecessor?
You just feel like commenting

Sincere 9gerian: This smacks of incompetence, ineptitude, inaptitude and cluelessness on the part of Fashola and the Lagos State Govt.

Fashola should have known that you dont award or go ahead with a concession agreement without reaching a financial close on the project.

Yes the Yar Adua govt made the same mistake with Lagos-Ibadan road but that was in the past. We cannot continue in the incompetence and cluelessness of the past and expect progress.

Worse still is the fact that the people of that area have been raped, financially, through the failed concession agreement. Yeye!

software man:
iif you check your records LCC owned by the chagouries has been in the Nigerian construction industry
since the early nineties.

A concession arrangement involves a company using its own money to develop infrastru
cture and then recover its money over a given period of time after which the infrastructure reverts back to the govt. Usually with these contracts is what is called a buy back option which apparently Lagos state is now trying to exercise for wider policy option.

Interestingly, the PDP controlled federal govt has failed severally in every since concession projects they ever attempted and I can understand how very ignorant and misguided people who lack the capacity to make meaningful contribution to POLICY discussions end up coming here to expose their crass ignoramce and stupidity.

Must you display your stupidity so publicly? LCC came into being in 2006, and does not belong to the Chaghoury's. They hold a small stake in Hitech. That's it.

Furthermore, APC is now playing catch-up to the PDP led FG who cancelled Bi-Courtney's concession on Lagos Ibadan expressway within 3 years of the award. LCC have been on Lekki Epe Expressway for 8 years and have exploited the people for at least 3 years out of that 8!!!

Oh wow

But it doesn't mean we'll no longer pay toll. Just means LCC will no longer be collecting. Lagos State has taken over the collection.

fashola is fraud
tinubu is a thief
apc is a looting machine
lagos don baje since 12 years ago
lagosian don see wenn under acn/apc

best thing for lagos is to port
the time to port is now
port to teamfreshair

an afterthought by the Lag govt? The tolling was a fraud BTW.

awhagwan:

Must you display your stupidity so publicly? LCC came into being in 2006, and does not belong to the Chaghoury's. They hold a small stake in Hitech. That's it.

Furthermore, APC is now playing catch-up to the PDP led FG who cancelled Bi-Courtney's concession on Lagos Ibadan expressway within 3 years of the award. LCC have been on Lekki Epe Expressway for 8 years and have exploited the people for at least 3 years out of that 8!!!

dont mind the uninformed people on nairaland.

i demand a refund of all the toll i paid in the last three years

120 x 2 x 360 x 3 = N259, 200.

#refundnow

software man:

they then borrowed money from foreign banks to build an infrastructure where by it take a minimum of ten to fifteen years to recover their money.

Its very easy for Tinubu to have a stake and have it not show ip on the books. If I had a stake in LCC it would be very good business to borrow money from the bank and make a lot more from tolls over the 10-15 year period. You are sure of daily income from the tolls in tens of millions as well as advert charges on the walls lining the road

software man:
this is probably the most idiotic thinking I have seen for a long time.

TINUBU and FASHOLA owns LCC an imternational construction company in existence for years.

they then borrowed money from foreign banks to build an infrastructure where by it take a minimum of ten to fifteen years to recover their money.

How can anyone be this stupid?

for your infor, ation, the elo Atlantic city is 100 % percent private sector driven.

You are probably a novice and do not live in this axis, I live in the axis and dine with the major players here, I do not discuss with people who are easily deceived. Did you expect Fashola and Tinubu to come out openly to say that they own LCC ? Politicians use surrogates to conduct high-class thievery, I guess you will still say Julius Berger Nigeria belongs to Germany, instead knowing it belongs to IBB. Young man, when I make a statement, take it as wholesale truth, I do not say things I am not sure of. Eko Atlantic is a project I love, and I am on the thought process on how to advance my personal gains over there, but does not mean that I do not understand the dynamics of the ownership structures.

Back off or you get barked down.