Cash crunch stalls work on Lagos-Ibadan Expressway
Posted by: Yusuf Alli, Abuja in Featured, News 5 hours ago

Govt to concession road
Motorists will continue to face hardship on the ever-busy Lagos-Ibadan Expressway – no thanks to a cash crunch that is threatening the Federal Government’s plan to rebuild the road.
The Federal Government is considering a fresh concession to investors to make the N167billion project a reality.
In the proposed Public-Private Partnership (PPP), the government will collaborate with investors, the Infrastructure Bank, Julius Berger Plc and Reynolds Construction Company Limited(RCC).
About N23million has been voted in the 2014 Budget for the hiring of consultants on the PPP scheme.
The government has also allocated N5billion to the rehabilitation of the Lagos-Sagamu-Ibadan dual carriageway (Section 1) to make for the challenge it is facing on the reconstruction of the expressway.
[b]The recourse to concession is being kept under wraps by the government in what a source described as a back-door approach.
[/b]The Federal Government, in November 2012, terminated the 25-year concession given to Dr. Wale Babalakin’s Bi-Courtney Limited for the construction and maintenance of the 105-kilometre Expressway.
The expressway was concessioned to Bi-Courtney in 2009 at N89.53 billion for 25 years.
Minister of Works Mike Onolememen said the agreement was revoked due to Bi-Courtney’s failure to adhere to its terms.
In June last year, the Federal Government re-awarded the reconstruction of the expressway to Julius Berger Plc and RCC.
Last July, President Goodluck Jonathan launched the reconstruction at N167billion with a completion timeline of 48 months.
But barely six months after the launch, the project has run into a hitch.
Neither the Federal Government nor the construction firms can source funds to execute the project.
A source, who spoke with our correspondent, said: “The government has no money to implement the project.
“There are so many competing demands for the government. And the construction firms, who has been re-awarded the project, cannot finance it without necessary legal backing granting the concession to them.
“The firms are also unprepared to take the risk to bear the cost without partnership or understanding with the government on how to recoup their investment.
“When the government re-awarded the contract to the two construction giants, it gave the impression that it would finance it wholesale.
“Even if the government now concedes the project to Julius Berger Plc and RCC, it would amount to a violation of the PPP law because there are laid down procedures.
“For instance, the project ought to be advertised for competitive bidding by the Infrastructure Concession Regulatory Commission (ICRC).
“So, the PPP for Lagos-Ibadan Expressway would have become legally flawed from the beginning.
“You can see that what the government should do first is what it is now doing. I think politics crept into the project and the government could not do its homework properly.”
Section 2.1 of the Nigerian Public-Private Partnerships Manual reads: “The project is usually initiated by a Ministry, Department, and/or Agency (MDA) of the government. In select cases, the project could be initiated by the private sector as an Unsolicited Proposal under a transparent, competitive process which will also be managed by a MDA.
“The first step for the MDA is to develop a project concept to be approved by the National Planning Commission (for projects of the Federal Government) or other relevant state authorities.
“The project concept will usually be based on a Pre-Feasibility study or Outline Business Case, and if it is approved, will allow the project to be included in the 15-year Master Plan (or National Implementation Plan for the Federal Government) which sets out the Government’s infrastructure investment strategy covering all forms of procurement, including projects that will be financed in whole or in part from the federal budget.”
It was learnt that the Federal Government was contemplating reaching out to the ICRC Governing Board for a “bail out”.
The board, which is headed by former Senate President Ken Nnamani, may receive the concession proposal this month.
Other members of the board are the Secretary to the Government of the Federation, Senator Anyim Pius Anyim; the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala; the Minister of Justice, Mr. Mohammed Bello Adoke(SAN); the Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi; Yabawa Lawan Wabi; Abdullahi Musa Elayo; Comfort Saro-Wiwa; Chief A.U. Kanu; Mrs. Janet F. Adeyemi; and Mr. Aminu Diko.
A member of the ICRC board, who spoke in confidence, said: “The government is proposing to go back to the concession alternative to enable it get investors to execute the project.
“This is the case because of cash flow. The resources are not there due to competing needs.
“The concession will involve a sort of PPP with the participation of Julius Berger, RCC, investors, the Infrastructure Bank and the government.
“There is a challenge however , we may need to waive procedures to make the project a reality. Yet, many people have reservations about this back-door approach.
“Yet, no investor will buy into a back-door method. If care is not taken, we may return to the same spot on the project.”
[/b]Responding to a question, the source added: “The President meant well and as a Governing Board, we will assist him to achieve his goal.”
A top source at the Federal Ministry of Works drew our attention to the provision for the wxpressway in the 2014 Budget.
He was not willing to entertain any question on the project.
A part of the budget reads:
•Rehabilitation and Asphalt overlay of Benin-Shagamu Expressway (Benin-Ofosu) N500 million
•Rehabilitation of Lagos-Shagamu-Ibadan dual carriageway section 1 N5 billion
•Reconstruction of the outstanding section of Benin-Ofosu-Ore-Ajebandele-Shagamu Expressway phase III N750 million
•Rehabilitation of Shagamu-Ajebandele-Ore road section 1 Ajebandele-Ofosu road in Ondo state N78,153,148
[b]•Lagos-Ibadan concession project management/consultancy services N23 million

http://thenationonlineng.net/new/cash-crunch-stalls-work-on-lagos-ibadan-expressway/

At least now the two prime bits of road infrastructure in the SW and SE are to be treated equally leaving the East - West and Abuja - Kano roads as the only major road projects the FG can found money for.

I guess this is what we get when the President needs 11 jets to move around in and when $50b can go missing from NNPC revenue only to be explained away with wishy washy stories like NPDC using the income from exporting over 100,000 barrels a day for exploration or $10.8b being used to subsidise the importation of kerosene.

Can the SW governments be given control of the road as they asked so they can rebuild it at their own cost? At this rate we shall get to the end of 48 months without anything to show for it.

The nation....ok

Federal government is confused as usual.

The lagos-ibadan road should be handed over to south west governments to handle.

The project is less than two billion dollars.

They should just hand over the roads to the states. The FG has too much to worry about.

juman: Federal government is confused as usual.

The lagos-ibadan road should be handed over to south west governments to handle.

The project is less than two billion dollars.

Mynd_44: They should just hand over the roads to the states. The FG has too much to worry about.

The FG has been incompetent in the development of infrastructure.

But why can't Lagos, Ogun and Oyo states collaborate to build a fresh highway to link Ibadan to Lagos and toll it accordingly.

Must it be this Lagos-Ibadan expressway which was built in the 70s?

They should start to think differently.

Pukkah:



The FG has been incompetent in the development of infrastructure.

But why can't Lagos, Ogun and Oyo states collaborate to build a fresh highway to link Ibadan to Lagos and toll it accordingly.

Must it be this Lagos-Ibadan expressway which was built in the 70s?

They should start to think differently.

No, things are not done that way. The same road should be improved.

pdp is used to campaign with empty hand.

From the nation newspaper.'smh'

juman:

No, things are not done that way. The same road should be improved.

Why can't things be done that way?

Why can't there be an old road (the existing one) and a new one?

The existing one is largely no longer an express way in terms of purpose. Unlike the way it was in the 70s and 80s, it has become like an intra-city road. People cross the road in large numbers starting from Alausa, through Berger, OPIC, Arepo, Magboro, Ibafo, Mowe, up to Sagamu. There's some respite after that until you are close to Ibadan.

Getting to Ibadan, the so-called expressway is very busy all the way from the Toll Gate to Ojoo.

I ask you, is Lagos-Ibadan still an expressway? It has been overtaken by urban sprawls and development.

If things can't be done that way, you won't have old Ife road, old Abeokuta road, etc.

I am not absolving the FG of its incompetence but we need to move on.

The expressway was bad for ages before the concession to BiCourtney. Almost 5 years after the concession, the story is still the same. Can't we go think beyond the incompetent FG before giving sound infrastructure to our people?

Pukkah:

Why can't things be done that way?

Why can't there be an old road (the existing one) and a new one?

The existing one is largely no longer an express way in terms of purpose. Unlike the way it was in the 70s and 80s, it has become like an intra-city road. People cross the road in large numbers starting from Alausa, through Berger, OPIC, Arepo, Magboro, Ibafo, Mowe, up to Sagamu. There's some respite after that until you are close to Ibadan.

Getting to Ibadan, the so-called expressway is very busy all the way from the Toll Gate to Ojoo.

I ask you, is Lagos-Ibadan still an expressway? It has been overtaken by urban sprawls and development.

If things can't be done that way, you won't have old Ife road, old Abeokuta road, etc.

I am not absolving the FG of its incompetence but we need to move on.

The expressway was bad for ages before the concession to BiCourtney. Almost 5 years after the concession, the story is still the same. Can't we go think beyond the incompetent FG before giving sound infrastructure to our people?

Very right....

The same thing on my mind about the state of the expressway....you see trailers parked on the roads all the way from Ibafo to Ogere..down to Ojoo but with intermittent respite and you begin to ask if that road is still an highway or an intra-city road.

I also believe there should be a different approach....probably a collaboration among the states in the zone for a toll road.

Pukkah:

Why can't things be done that way?

Why can't there be an old road (the existing one) and a new one?

The existing one is largely no longer an express way in terms of purpose. Unlike the way it was in the 70s and 80s, it has become like an intra-city road. People cross the road in large numbers starting from Alausa, through Berger, OPIC, Arepo, Magboro, Ibafo, Mowe, up to Sagamu. There's some respite after that until you are close to Ibadan.

Getting to Ibadan, the so-called expressway is very busy all the way from the Toll Gate to Ojoo.

I ask you, is Lagos-Ibadan still an expressway? It has been overtaken by urban sprawls and development.

If things can't be done that way, you won't have old Ife road, old Abeokuta road, etc.

I am not absolving the FG of its incompetence but we need to move on.

The expressway was bad for ages before the concession to BiCourtney. Almost 5 years after the concession, the story is still the same. Can't we go think beyond the incompetent FG before giving sound infrastructure to our people?

Hmmm, you have a point.
It's an option.

The problem became complicated because of many many years of neglect of the road. But the road is also good to be upgraded to the right status.

obj did not do the road.

The super traditional rulers were too busy fighting for supremacy among themselves to remember that they are leaders to lead their people.

What an IBB generation of people.

Pukkah:



The FG has been incompetent in the development of infrastructure.

But why can't Lagos, Ogun and Oyo states collaborate to build a fresh highway to link Ibadan to Lagos and toll it accordingly.

Must it be this Lagos-Ibadan expressway which was built in the 70s?

They should start to think differently.

Interstate roads are owned by FG.

Min of works will not allow them to do that.

juman:

Hmmm, you have a point.
It's an option.

The problem became complicated because of many many years of neglect of the road. But the road is also good to be upgraded to the right status.

Frankly, it's the right way to go. If you look at the breakdown of 2014 budget proposal, you WILL NOT expect any miracle on infrastructure.

If you compare the about 73million population of Nigeria in about 1978 when the expressway was built to the present estimated population figure of 160million, you will agree that we need another option to link the two busiest/populous cities in the SW. The population of Lagos around 1978 could not have been more than 4m.

Thirdly, the present Lagos-Ibadan expressway has lost its status as a freeway or expressway. There are so many estates and houses, religious centres, businesses, etc which make people dash across the highway.

Fourthly, the human carnage on that road is so much that nothing is too much to be done to provide an alternative.

ilugunboy:
Very right....
The same thing on my mind about the state of the expressway....you see trailers parked on the roads all the way from Ibafo to Ogere..down to Ojoo but with intermittent respite and you begin to ask if that road is still an highway or an intra-city road.
I also believe there should be a different approach....probably a collaboration among the states in the zone for a toll road.

I even forgot to include the trailers. They are a nuisance on the road.

It was an expressway between Alausa, Lagos and Ojoo, Ibadan. Today, it is no longer an expressway.

SW should make a bold move and leave the shameful Lagos-Ibadan with the FG; then move on to build a fresh, world-class highway, with light rail option, which can be tolled. The highway should have strict set-back regulations to shut out residential/business buildings and hawkers.

This will decongest Lagos and open up other places in the SW. For example, why can't someone work in Lagos and live in Ibadan?

There is land. There is a business case. The governors are in the same party. What's holding them back?

superstar1:

Interstate roads are owned by FG.

Min of works will not allow them to do that.

Where there is a will, there is a way.

The first option is to ask for approval from the FG. I doubt if they would be denied the approval. Lagos got the Badagry expressway approval from the FG.

The second option is to break the highway into three - Lagos, Ogun, and Oyo parts. Lagos should do its own part up to Ogun boundary, Ogun should continue it up to Oyo boundary and so on. Will the Federal Ministry of Works prevent this?

Oyo state did the road from Iwo road roundabout towards Iwo in Osun state. If this is possible, why can't the second option above be?

Hmmmm

God dey.

all those abusing amechi wen he leaked dat d FG is broke including okonjo shuld cover their face wit shame.

Where is that picture of retardeen GEJ driving a tractor in his agbada during his so called inauguration or ground breaking ceremony with cameras in roll for the world to see the propaganda?? LWTMB! In truth, GEJ is really daf.t and it just shows as he commits on gaffe after another!

They are hence the SW regional road that is part of the SW Masterplan. That is one reason to preserve this Republic so the SW can get a clear two decades to show what it can do. Others are free to follow their own paths to the future.

Pukkah:



The FG has been incompetent in the development of infrastructure.

But why can't Lagos, Ogun and Oyo states collaborate to build a fresh highway to link Ibadan to Lagos and toll it accordingly.

Must it be this Lagos-Ibadan expressway which was built in the 70s?

They should start to think differently.

Do you have facts to controvert the piece abi na just 'smh' be the limit of your argument?

Rad1cal: From the nation newspaper.'smh'

Which is why Aregbe is building a distinct road from Oshogbo to Lagos which avoids Ibadan entirely and cuts journey time by more than half.

Pukkah:

Why can't things be done that way?

Why can't there be an old road (the existing one) and a new one?

The existing one is largely no longer an express way in terms of purpose. Unlike the way it was in the 70s and 80s, it has become like an intra-city road. People cross the road in large numbers starting from Alausa, through Berger, OPIC, Arepo, Magboro, Ibafo, Mowe, up to Sagamu. There's some respite after that until you are close to Ibadan.

Getting to Ibadan, the so-called expressway is very busy all the way from the Toll Gate to Ojoo.

I ask you, is Lagos-Ibadan still an expressway? It has been overtaken by urban sprawls and development.

If things can't be done that way, you won't have old Ife road, old Abeokuta road, etc.

I am not absolving the FG of its incompetence but we need to move on.

The expressway was bad for ages before the concession to BiCourtney. Almost 5 years after the concession, the story is still the same. Can't we go think beyond the incompetent FG before giving sound infrastructure to our people?

Pukkah:



The FG has been incompetent in the development of infrastructure.

But why can't Lagos, Ogun and Oyo states collaborate to build a fresh highway to link Ibadan to Lagos and toll it accordingly.

Must it be this Lagos-Ibadan expressway which was built in the 70s?

They should start to think differently.

there are major roads on blue prints. U can't jes change them cos they are the map!

biodunid: Which is why Aregbe is building a distinct road from Oshogbo to Lagos which avoids Ibadan entirely and cuts journey time by more than half.

Really? That sounds interesting. Has the project started? I'll like to know more about the road.

Pukkah:

Where there is a will, there is a way.

The first option is to ask for approval from the FG. I doubt if they would be denied the approval. Lagos got the Badagry expressway approval from the FG.

The second option is to break the highway into three - Lagos, Ogun, and Oyo parts. Lagos should do its own part up to Ogun boundary, Ogun should continue it up to Oyo boundary and so on. Will the Federal Ministry of Works prevent this?

Oyo state did the road from Iwo road roundabout towards Iwo in Osun state. If this is possible, why can't the second option above be?

They ve seeked for approval for construction of 12 lane (shagamu interchange to ibadan) and 16 lane at (sagamu interchange to lagos), but some silly people adviced Gej not to grant it cos they feel it will give opposition political edge over him. Now that things has deteriorated politicaly to this level, i doubt he will approve it now.

seunfly:
They ve seeked for approval for construction of 12 lane (shagamu interchange to ibadan) and 16 lane at (sagamu interchange to lagos), but some silly people adviced Gej not to grant it cos they feel it will give opposition political edge over him. Now that things has deteriorated politicaly to this level, i doubt he will approve it now.

This is one reason I regret voting for GEJ.....his political pettiness.

seunfly:
They ve seeked for approval for construction of 12 lane (shagamu interchange to ibadan) and 16 lane at (sagamu interchange to lagos), but some silly people adviced Gej not to grant it cos they feel it will give opposition political edge over him. Now that things has deteriorated politicaly to this level, i doubt he will approve it now.

Imagine what a 12 lane road from Ibadan to Shagamu would mean and a 16 lane from Sagamu to Lagos would mean for the economy of Nigeria?? That would be entirely incredible because it will expand the transportation sector, more cars on the road, more savings for travel time, more jobs for construction and maintenance, tourism boost, opening up a huge economic and infrastructure leap over many other countries on the same level as Nigeria!

Well, no shakings! One day, the plan will be achieved only it will be better. I am not in favour of 16 lanes, it's way too many! I would prefer 12 wide lanes and a dual high speed rail link running parallel to the 12 lane highway, what a site that would be! Special considerations should be made for the high population churches and mosques around that area such that they are no longer near or opposite the express road in the first place! Let them build a rail station somewhere branching off the high speed rail link to run through those high traffic areas with Light Rail Transit and buses all sharing it as a transit centre! The government will make not less than 100 M from that alone per month for the many religious centers around that area which is possible that only 100,000 people come around that area and each spend about N 1000 to and fro but very convenient. That is N 1.2B for that alone, not to mention the toll gates at 2 places on that road which I am sure will rake in at least twice that amount per month. The total economic activity on that road alone cannot be less than N 5 B annually!

Pukkah:

Really? That sounds interesting. Has the project started? I'll like to know more about the road.

heard the road is in the tarring stage. from Gbongan (off ibadan-ife expressway) through ijebu igbo to sagamu interchange and from there to Lagos.

ilugunboy:

This is one reason I regret voting for GEJ.....his political pettiness.

Did GEJ beg you to vote for him? Smh! If your ugly brother (OBJ) you voted for 2 consecutive time could not do the road you expect GEJ from a distance SS to do it? As you can see GEJ have other important issue to attend to

gratiaeo:
Did GEJ beg you to vote for him? Smh! If your ugly brother (OBJ) you voted for 2 consecutive time could not do the road you expect GEJ from a distance SS to do it? As you can see GEJ have other important issue to attend to

You see your tolotolo brain ? Is GEJ a clannish President? Is He the President of ibos? Is He not the President of Nigeria? When Obasanjo was the President, did He not award the dualization of Owerri -Onitsha road? Did He not award several other roads in the SE for dualization? Are not most of the roads GEJ is struggling to complete in SE initiated by Obasanjo's regime?