.

Architectural drawing is now the new definition for village world class project. Please stick to your village borehole and plastic container...


This is definitely the cue to ignore this joker from here on. This is about Lagos state and not your village...

enm:


No what we saying base on what they "LASG " are saying is that the " bond " purpose is for buying of the "RIGHT HOLD BY LCC IN THE PROJECT " now after sourcing for such amount to buy of the right of lcc which to me is way too much out of this world, where will the government source for fund to complete the project?

Guy this thing na simple thing, is not that difficult to understand. Remove all the big grammar and you will know that we have been played.

This is a legallized 419.

Question is how much did lcc spent on the project ( don't add the 5 billion of lagos state money) and how much have they realized from the project through tolling and advert

Don't forget they supposed to have built the whole road before tolling . Ore a ti wo one chance.

And I'm still telling you that Lagos state buying out the LLC is a good move and the people of Lagos state stand to benefit immensely based on this move.. You have no idea what is going to happen regarding funding for the rest of this project so quit alarming yourself needlessly...

Your rants about whats too much is nothing but your own warped internet opinion since you are not A road engineer or contractor, you are not an economist of financial planner with any kind of knowledge regarding this project, you have no financial data and you know nothing beyond your ignorant opinion which sadly you are entitled to...

agbameta:


And I'm still telling you that Lagos state buying out the LLC is a good move and the people of Lagos state stand to benefit immensely based on this move.. You have no idea what is going to happen regarding funding for the rest of this project so quit alarming yourself needlessly...

Your rants about whats too much is nothing but your own warped internet opinion since you are not A road engineer or contractor, you are not an economist of financial planner with any kind of knowledge regarding this project, you have no financial data and you know nothing beyond your ignorant opinion which sadly you are entitled to...

Yes I am not a road engineer or engineer of any sort neither am I a contractor ( but with what am seeing with this concessioning of thing I might become one) . Yes I am not an certificate holding economist nor a financial planner but all I know is that we had been had, play like ping pong right from the start.



Yes it's good that its now in government hand but at what cost?



The initial plan was to upgrade and expand an existing road through PPP where at the end of the day, the investor will recoup their money back with interest through tolling and advert for a period of 30yrs.



but did they complete the road before tolling? no instead they completed 10 kilometer and start tolling and they have not even finish with the next 10 kilometer they are planing of hiking the fee up.



when was the agreement enter into and when did the project start? how many year did it take them to upgrade and expand 10 kilometers of road and at the space they where going how long do you think it will take them to cocomplete the the whole 50 kilometers of road before venturing onto the construction of the costal road?



And what is the essence of concessioning that project in the first place? is it not to reduced the financial burden of the state so that more fund can be available for the execution of other project?



Citing the devaluation of the naira as excuse hold no water because inflation would have been factor into the project when computing and projecting the cost of the project. Abi you wan tell me say na galloping inflation they happened for we country since the commencement of the project? or the materials plus equipment and the human resources are imported?



Guy, with my village economic sense, I and no serious investor with a conscience who value money will pay such a huge amount for such a right with the level of work carried out on that road.



Lagos state has buy out the right from lcc which means the right to generate revenue and finish the construction of that road. while lcc will be in charge of the road on behalf of the good people of lagos, and do you think they will do it for free? no



So who gain and who loose? lcc gain while we loose. There is no win win situation here for both party.



Ore, accept the truth, we have been duped of our tax payer money.



Oh, thanks for the insults, is a good sign that you love and care for me.

[color=#000099][/color]In as much as i believe so much in PPP,this Lekki-Epe expressway has been a monumental fraud from the word go and this denial by the state govt about its cancellation buttressed it.Firstly,the expansion of 50km road at N50B is surely out of this world ..2ndly,the number of toll gates on this road is quite outrageous,...3rdly,for years this project has been on-going and maybe still remains an on-going project for years to come.....And finally this sudden 'buy back' and tolling continues by same LCC......This is a 'smart' fraud well-scripted but unfortunately,its isnt as clean as the 'Lagos state property identification exercise(PIE)' contracted to 'a Canadian firm' during the former guvnor's tenure........A clean nice fraud!.......Guys aint you tired of 'packing'.....gawd!

Boss13:

Exactly, LASG will have to go source the money either by Federal monthly allowance, Internal Revenue Generations or by issuance of Bonds (I heard LASG will issue bond soon). The Lekki-Epe expressway will now form part of the budgetary plan for the state, another reason why the bill was sent to the State House of Assembly for approval. The tolling was not stop, the State will generate income from the toll, LCC (which is now owned by the State Govt through the buy-back via shares) will collect the toll on behalf of the Govt. But the Govt will not rely on the toll income to finish the road.

I hope you understand now. I wanted to do the financial analysis of this and to explain financially why the Investors of LCC are better off. Honestly, this was a wasted project another waste of tax payers money and to make matter worse, tax payers have made someone richer.

[quote author=MostIncredible.DFirst]Fashola is buildin each KM of road for N1 billion, n tolling all common amenities which d citizens are supposed to enjoy. Yet some idiots wil come here 2 claim he's d best governor in nigeria n building excellent infrastructures! NONSENSE![/quote

see how u do your maths.
you try well well

enm:



Yes I am not a road engineer or engineer of any sort neither am I a contractor ( but with what am seeing with this concessioning of thing I might become one) . Yes I am not an certificate holding economist nor a financial planner but all I know is that we had been had, play like ping pong right from the start.



Yes it's good that its now in government hand but at what cost?



The initial plan was to upgrade and expand an existing road through PPP where at the end of the day, the investor will recoup their money back with interest through tolling and advert for a period of 30yrs.



but did they complete the road before tolling? no instead they completed 10 kilometer and start tolling and they have not even finish with the next 10 kilometer they are planing of hiking the fee up.



when was the agreement enter into and when did the project start? how many year did it take them to upgrade and expand 10 kilometers of road and at the space they where going how long do you think it will take them to cocomplete the the whole 50 kilometers of road before venturing onto the construction of the costal road?



And what is the essence of concessioning that project in the first place? is it not to reduced the financial burden of the state so that more fund can be available for the execution of other project?



Citing the devaluation of the naira as excuse hold no water because inflation would have been factor into the project when computing and projecting the cost of the project. Abi you wan tell me say na galloping inflation they happened for we country since the commencement of the project? or the materials plus equipment and the human resources are imported?



Guy, with my village economic sense, I and no serious investor with a conscience who value money will pay such a huge amount for such a right with the level of work carried out on that road.



Lagos state has buy out the right from lcc which means the right to generate revenue and finish the construction of that road. while lcc will be in charge of the road on behalf of the good people of lagos, and do you think they will do it for free? no



So who gain and who loose? lcc gain while we loose. There is no win win situation here for both party.



Ore, accept the truth, we have been duped of our tax payer money.



Oh, thanks for the insults, is a good sign that you love and care for me.

well said, However, if government sees a an error made y his or another administration, there is nothing stopping them from correctiing it, and there is always a cost to that. i THINK is better to get out of LCC charges going up day in day out, but my fear is if the state govenment would be able to manage i tproperly

Hello All,

Before this thread goes to the (bigotted) dogs, let me join the fray and make some few contributions

1. @Boss13. you need to slow down. I'm struggling within me not to assume "this is a financial learning grossly misapplied".
2 First off, we need commend Lagos for the vision and audacity of a going into a PPP arrangement of this magnitude, being the first at it in Nigeria. I believe it's a process we have to learn from - our government, financial analysts, planners and enumerators, engineers and contractors, lawyers (tighly documenting the agreements) etc, and we should let it evolve.
3. Is there anything wrong with the current Lekki-Epe Expressway? I don't think so.
4. @Boss13, I would think it's little or no wisdom to jump into seeming concrete conclusions with little, scanty and no information that will be required to take informed decisions. All your conclusions to me are faulty. Yes they will issue another Bond...so? Yes they will source for new capital to continue the road.....there are many alternatives to sourcing funds to the limit of the creative thinking of the government of the day. Lekki-Epe expressway as an infrastracture is not standing in isolation. It is strategically a pathway to other beneficial programs and infrastructures. It is the route to the Lekki free trade zone, Lekki port, Lekki International Airport and so on. A whole lot of activities will go on here in the future. If you ask me, I think sourcing for funds to complete the remaining part of the project is probably one of the least of their worries. I also thing it sparks less creative thinking to limit the ability of Lagos State to raise fund to a blocked Federal Allocation or a blanket IGR (making it look like the IGR or Lagos is also pegged). How are we going to source for funds for the other part of the road? we simply explore many of the numerous alternatives available to us
5. For me, Lagos has demonstrated a health and boiltrous economy both now and the future. We have demonstrated confidence in investors of the ability to pay our debt and still stay healthy.

Now you guys calling this project fraud are simply just getting over yourselves. How many of us remember the state of the road prior to the commencement of the project. How many of remember the state of the coastal axis from Bar Beach all through the Lekki Corridors. How many of us remember when the Federal Government spent a whooping 4Billion Naira to sand-fill Bar beach during the Ogunlewe-FERMA regime only for the Ocean surge to wash it all away at the next rains. How many of us remember when Lekki-Expressway was so erroded that in some place only half of the span was motorable.

Decisions had to be made and hard ones; some reality checks

1. Have we considered that probably an agreement in the clause of the contract allowed LCC to collect tolls when they did in the milestone of project to cushing the effect of cost of funds.
2. Have we considered that even at that rate we have a consortium of Local and some International banks coming together to finance this project back then.......what was our risk profile matched with the interest rates on the funds pulled together by LCC?
3. It is legitimate and valid for Lagos State to put the burden on LCC back then if we had no appetite to shoulder the risk and take it off LCC when our risk appetite increases as it is seems now
4. The over-acrching objective is much more that these crumbs of needless accusations you guys are throwing about. A city needs to be built. We have 30years of massive infrastructural development to attain (my estimate). In this journey we will make mistakes, we will learn from it and make it better.

You guys crying fraud.......look to me as very "useful" in destructive criticism, yet offers no solution......

Your making insinuations, conjectures, assumptions that are not verified. You'd better bring your "text-book" analysis to reality.

Boss13:

Now that is left for Lagos State Resident to start SCREAMING NOW!!!!!!! The publication was devised to confuse people. However, you have to read in between the lines. LASG has bought off the private investors from their company. The company now belongs to LASG. The term buy-back of concession via purchase of shares was intended to confused people. This is a project the LASG contributed N5 billion and now part off N15 billion (total government expenditure N20 billion).

From the publication N32 billion has been expended on the road, what is the percentage rate of completion at as now and what is the total cost of constructing that road. Remember, LCC has incurred debt and other liabilities which the government is still going to pay.

Please pardon my analysis of LASG owning LCC (even though we know). I got emotional about the dirty deal. It has only bought the concessionary right through shares. So LASG is also a shareholder of LCC and LCC will not longer keep the tolls as part of its income, but collect it and give it to LASG. I also wonder if LCC will be constructing roads or if it was actually set up to be a construction company. But I give kudos to the master mind of this project, the guy truly thinks and a smart financial business analyst.

Have you seen the terms of the agreement or the contract to ascertain if the right to Toll at that point was not factored in? Have you imagined if the early Tolling was not an option to reduce the cost of funds and serve as additional capital in managing the project and its operations.

I dare ask, even with the best finacial analyst and scenario planners in the world, don't conditions change that warrant some sort of detour?

That the government will have to source funds.......and will deplete or affect other project as alluded by you is faulty. In terms of opportunities identification, income generation potential of Lagos State and future ability to attract investors, have we really reached the limit? Lagos State is currently projecting to hit $40Billion in IGR in 5years, if this becomes a reality, then we are yet to even determine the "size of the pie". I think you're limiting your imagination or getting it beclouded by some unnecessary steretypic assumptions.

Boss13: @ Delafruita if LCC is a going concern, it does not need tolls to complete the construction of the road. It can source its funds either through loan (and that it what it has done) or capital (Doesn't the company have capital). The tolling will be income to repay the loan and also make profit for constructing the road. I believe the management went to the drawing board after noticing that their financial projection was not summing up based on their budgetary analysis. Hence, they invoke the buy-back right.

Now the LASG has agreed to issue bond to buy the concessionary right. Remember interest will be paid on the bond. The bond was issued to by concessionary RIGHTS and not to for infrastructure development. Again, the government was now have to source for funds to finish up the road. Now if you are a good financial analyst, you should know that there have been a depletion, an opportunity cost (an alternative forgone). The government MUST pay for the bond it has issued to investors and because it will source fund from either Federal Monthly Allocation or Internal Revenue Generation, projects that these funds should have primarily be used for will suffer.

Now delafruita how will the LASG pay for interest and principal for the bond? By re-issuing another bond? (Excuse me) by using your tax payers' money to pay investors and if they want to be nice by using Federal monthly allocation (I doubt this one because, this monthly fund should have been budgeted for)

Fashola is truly working.....

@pecker lord, nothing bad in back back the project but if the project must be buy back, all what I expect LASG to do is to compensate them for the money spent on the completed portion that is if LASG want to do father christmas because to me lcc has defaulted in carrying her own part of the bargain which to " build " " operate " to recoup back their money with profit and "transfer" to lagos state after 30yrs, but did they do that before tolling the road?

How long did it take them to construct the 10 kilometers which they are tolling?

You see my brother lagos state has no business buying back anything but revoking the contract.

2008- LASG & LCC sign BOT transfer on Lekki expressway

2012 - LCC starts collecting money from road users

2013 - LASG uses GOVERNMENT money to pay off LCC for a job that has not been completed and then retains LCC to collect money from road users for the same project which government is supposed to fund for the benefit of its citizens.

Eku ise oooo

enm: @pecker lord, nothing bad in back back the project but if the project must be buy back, all what I expect LASG to do is to compensate them for the money spent on the completed portion that is if LASG want to do father christmas because to me lcc has defaulted in carrying her own part of the bargain which to " build " " operate " to recoup back their money with profit and "transfer" to lagos state after 30yrs, but did they do that before tolling the road?

How long did it take them to construct the 10 kilometers which they are tolling?

You see my brother lagos state has no business buying back anything but revoking the contract.

God bless you. A sensible government revokes the contract and hands it over to a more serious contractor. However, you see a different scenario here. Someone was busy imaging the potential income generation of LASG in 5 years. Fashola has publicly told Lagosians that all projects will be carried out if there were enough funds to do so. Now in the scale of preference, some projects are considered more important than others and funds are allocated to undertake them. I am tired of analyzing this but to round up. THIS IS FRAUD PERIOD.

Boss13:

God bless you. A sensible government revokes the contract and hands it over to a more serious contractor. However, you see a different scenario here. Someone was busy imaging the potential income generation of LASG in 5 years. Fashola has publicly told Lagosians that all projects will be carried out if there were enough funds to do so. Now in the scale of preference, some projects are considered more important than others and funds are allocated to undertake them. I am tired of analyzing this but to round up. THIS IS FRAUD PERIOD.

Don't be surprised that they may decide to sell the rights to another fraudulent consortium again. The way they have played politics with this road is very disturbing. They are trying to gain sympathy from the populace while robbing the citizenry blind.

Any sane person knows that buying out this project sends wrong signals to private investors who would be wary of doing business with LASG in the future. LASG knows this and went ahead anyway making me think this was always in the making. How can the reason for buying back simply be as a result of anticipated increase in tolls? In a sane society, this issue alone can make the people turn against the government in power. Where is transparency?

.

.

BTW, look up the definition for insult..

enm:

[s]

Yes I am not a road engineer or engineer of any sort neither am I a contractor ( but with what am seeing with this concessioning of thing I might become one) . Yes I am not an certificate holding economist nor a financial planner but all I know is that we had been had, play like ping pong right from the start.



Yes it's good that its now in government hand but at what cost?



The initial plan was to upgrade and expand an existing road through PPP where at the end of the day, the investor will recoup their money back with interest through tolling and advert for a period of 30yrs.



but did they complete the road before tolling? no instead they completed 10 kilometer and start tolling and they have not even finish with the next 10 kilometer they are planing of hiking the fee up.



when was the agreement enter into and when did the project start? how many year did it take them to upgrade and expand 10 kilometers of road and at the space they where going how long do you think it will take them to cocomplete the the whole 50 kilometers of road before venturing onto the construction of the costal road?



And what is the essence of concessioning that project in the first place? is it not to reduced the financial burden of the state so that more fund can be available for the execution of other project?



Citing the devaluation of the naira as excuse hold no water because inflation would have been factor into the project when computing and projecting the cost of the project. Abi you wan tell me say na galloping inflation they happened for we country since the commencement of the project? or the materials plus equipment and the human resources are imported?



Guy, with my village economic sense, I and no serious investor with a conscience who value money will pay such a huge amount for such a right with the level of work carried out on that road.



Lagos state has buy out the right from lcc which means the right to generate revenue and finish the construction of that road. while lcc will be in charge of the road on behalf of the good people of lagos, and do you think they will do it for free? no



So who gain and who loose? lcc gain while we loose. There is no win win situation here for both party.



Ore, accept the truth, we have been duped of our tax payer money.



Oh, thanks for the insults, is a good sign that you love and care for me.[/s]

And I'm still telling you that Lagos state buying out the LLC is a good move and the people of Lagos state stand to benefit immensely based on this move.. You have no idea what is going to happen regarding funding for the rest of this project so quit alarming yourself needlessly...

Your rants about whats too much is nothing but your own warped internet opinion since you are not A road engineer or contractor, you are not an economist of financial planner with any kind of knowledge regarding this project, you have no financial data and you know nothing beyond your ignorant opinion which sadly you are entitled to...

where is Femi Falana and the so called progressives and human rights? they are all quiet .!!because they all benefit from Tinubu and the LASG. Now ,they are concerned with Taraba governor and shouting hoax...yet the real deal is here in lagos..
you pay tax and tolls and no direct benefit... whatsoever...but fraud and fraud.
The LCC lekki toll is a fraud designed ab initio. Tinubu has collected 7.5bn and possibly 15bn and you can bet his company will still be the one collecting the toll in behalf of LASG despite the buy back.. what a circus ..an obvious fraud yet all are quiet as long as they are the one... no problem. hypocrites !
they wont tell us how much the LCC has made from the toll in the 3 years and am sure the toll in these 3 years is enough to pay the 32bn ... but wait given that it is 1bn per km how many km of the road has been done is it up to 32 km? I doubt.
pls tell us all the facts. How much km of road has been done and how much toll has been collected?

docjuli: "The general public is therefore enjoined to continue to cooperate with LCC’s officials and operatives as it continues the expansion and construction works on the 49.36km Eti-Osa Lekki-Epe Expressway and the operations of the toll collection systems. LASG wishes you a safe and happy motoring experience on the modernised expressway with its associated free value added services such as 24/7 security patrol, vehicle break down recovery, ambulance services, amongst others.

Eko oni baje O!

Ayo Gbeleyi Ade Ipaye
Honourable Commissioner for Finance Honourable Attorney-General & Commissioner for Justice"

Over to you now.

it seems LASG has bitten more than it can chew. It is not bad enough that hardworking citizens of Lagos and residents of Lekki have τ̅☺ pay for infrastructure that is meant τ̅☺ be free in d 1st place, now, they are using 15billion naira of taxpayers money τ̅☺ payback investors like Thiefunbu whole stole from the state govt in d ist place. SMH for corruption in Naija

daylight robbery