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The Federal Government of Nigeria has granted private individuals permission to build, operate or maintain assets on some federal highways that are up for concession.
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This arrangement was made under the new highway development and management initiative (HDMI).
The initiative is contained in a new document released by the federal ministry of works and housing (FMWH) and signed by Boade Akinola, its director of press and publicity. It outlines how the partnership would be executed.
The FMWH said the concession process will be classified into two categories — value-added concession and unbundled assets approvals.
For the value-added concession, the road pavement and entire right-of-way will be on concession for development and management by the concessionaire.
While for the unbundled assets approvals initiative, “approvals/permits are issued for individual assets on the right-of-way on a build, operate and or maintain basis.”
Already, the Federal Ministry of Works and Housing had received the Outline Business Case Certificate of Compliance to the commence procurement process for the concession of 12 federal highways.
This implies that individuals would now be permitted to develop and maintain assets on the economically viable federal highways in order to boost the economic activities on the roads.
The FMWH stated that the aim was to provide adequate highway services through the development of revenue-generating assets along the highways.
The concession of the roads may also signify the return of toll gates as concessionaires will have to recoup their investments.
The Infrastructure Concession Regulatory Commission had handed over the certificate to the Minister of Works and Housing, Babatunde Fashola, at the FMWH headquarters in Abuja.
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