Fresh facts have emerged on why the concession of Lagos-Ibadan road construction project failed.
Director-General, Infrastructure Concession Regulatory Commission (ICRC), Aminu Dikko, said that the concession of Lagos-Ibadan road project failed due to lack of transparency, tolling structure, inability to capture the expanse of land required and non-consultation with stakeholders (Lagos, Ogun and Oyo state governments).
He listed the other inhibitions to include lack of visible financial emoluments, lack of competition and lack of transparency.
The ICRC boss, who was represented by one of his staff, Ndubuisi Nwabuchi, disclosed these at the one-day National Mandatory Continuing Professional Development Seminar organised by the Nigerian Institution of Estate Surveyors and Valuer (NIESV) in Lagos.
Besides, he noted that the 2005 enactment law setting up the commission was somehow faulty due to the fact that it failed to stipulate sanctions for any party that breeches the concession agreement, adding that lack of laid down guidelines was another factor inhibiting Public Private Partnership (PPP) projects in the country.
Some of the PPP projects that failed to see the light of the day include Nigeria Airways/Virgin Atlantic, Tafawa Balewa Square (TBS) concession, Federal Secretariat Complex, Ikoyi and Nitel/Mtel, among others.
The Federal Government had last year revoked the concession granted a private firm, Bi-Courtney Highway Services, to reconstruct and maintain the Lagos-Ibadan Expressway.
The revocation, according to the Federal Government, was due to “serial breaches” committed by the firm.
The concession was granted in 2007 by the administration of the late President Umaru Yar’Adua but the firm was unable to reconstruct the road due to many reasons adduced by it.
The road had since been handed over to Julius Berger, to handle Section 1 from Lagos to Sagamu Interchange, and Reynolds Construction Company, to handle Section 2 from Sagamu Interchange to Ibadan.