The Federal Government plans to recover its investment in the Lagos-Calabar Coastal Highway project through tolling over 15 years, according to Works Minister Dave Umahi. The N4 billion per kilometer road is expected to be completed in eight years, with motorists paying N3,000 per toll gate.
Umahi refuted former Vice President Atiku Abubakar's claim that the project is fraudulent, stating that the standard gauge design adopted by the Federal government costs N4.59 billion per kilometer. He explained that the previous design by the Niger Delta Development Commission (NDDC) was incomplete and replaced with a more comprehensive standard gauge design.
Atiku criticized Umahi for changing the project's initial plan and awarding it to Hitech without competitive bidding. Umahi defended the award process, stating that it followed due process and considered the company's track record, citing Hitech's successful projects like Eko Atlantic and previous road projects.
Umahi clarified that the project is not under the Public Private Partnership (PPP) but under the Engineering Procurement Construction Plus Finance (EPCF) model. He explained that the Federal government would pay a counterpart fund for the project, similar to other infrastructure projects like the Abuja-Makurdi highway.
The project, spanning 700 kilometers with two spurs, aims to connect various regions and enhance trade. Umahi assured that the project would not lead to job losses in communities along the corridor and confirmed the inclusion of toll gates to recoup the investment. The project is funded by the African Development Bank (AfDB) and will be completed in phases over eight years.
