FG seeks private sector commitment to N1.34 trn Highways maintenance project

… Project will boost nation’s economy with jobs,  says APC 

By Ezeocha Nzeh 

The All Progressives Congress (APC) on Tuesday described the federal government’s introduction of a Highway Development Management Initiative (HDMI), às giant move that is geared towards boosting the which will grant licences to the nation’s economy.

The Federal government in a recent decision introduced the Highway Development Management  Initiative, which it said would promote private concerns to build, operate and maintain highways across the country.

The proposal according to the Federal government would commenced with 12  designated federal roads penciled down for the first phase that could lead to a return of toll gates on the nation’s major roads.

The project is estimated to gulp a total of N1.34 trillion,  which is expected to be sourced by private sector in return to managing the highways through return of toll gates.

“Aside being a global best practice, the HDMI road concession arrangement complements previous financing options initiated by the President Muhammadu Buhari administration, including the Sukuk Bond; Presidential Infrastructure Development Fund (PIDF) – a dedicated fund for the construction of the Second Niger Bridge, the 375km Abuja-Kano Road and Lagos-Ibadan Expressway and the Road Infrastructure Tax Credit which the Dangote Group and LNG have leveraged on to construct the Obajana-Kabba Road, Apapa-Oworonshoki Road and the Bonny-Bodo Road and Bridge, respectively.” APC noted in a statement issued by its Caretaker Committee Secretary,  Senator John AkpanUdoedehe in Abuja.

The party,  which commended the federal government for the decision,  emphasised that the push will not only  boost the nation’s economy with job creations,  but will also complement the infrastructure drive of the President Buhari administration to bequeath a world-class national road network, adding that the concessionaire agreement will ensure the development of indigenous small and medium-scale businesses along the highways and create thousands of direct and indirect jobs.

“As the President Buhari administration embarks on initiatives to mitigate the economic impact of the COVID-19 pandemic and continue to execute ongoing critical infrastructure projects, we call on the support of all Nigerians and stakeholders.

The economic impact and gains of the Highway Development Management Initiative value chain and private sector investment estimated at N1.34 trillion for the development and maintenance of the 12 pilot routes are enormous and will benefit all”

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