The Infrastructure Concession Regulatory Commission (ICRC) has said federal roads approved by the Federal Executive Council (FEC) for concession will generate over N11.54 trillion in the 25-year concession period for the projects.
The projects would be delivered under the public private partnership model.
The construction and maintenance of nine road corridors are under the Highway Development and Management Initiative (HDMI) of the regulatory guidance of the ICRC.
The highway development project was initiated by the Federal Ministry of Works and Housing, and originally targeted 12 road corridors, within which there are 13 routes. However, three corridors and one route had yet to reach the FEC approval stage.
A statement by ICRC signed by Manji Yarling, the Ag. Head, Media and Publicity, said the routes that were approved include: the Benin-Asaba (Route 1), a 125km road that has been granted a concession for a 25-year period and is expected to generate N1,588,774,183,303 (N1.58trn) within the period. The concessionaire is Africa Plus Consortium.
Route 2 is the 195km Abuja-Lokoja road which also has a 25-year concession period and is expected to generate N1,762,597,600,000 (N1.76trn). The concessionaire is Avia Infrastructure Services Limited (AISL).
The 161.2km Onitsha-Owerri-Aba route, which is the 4th, will generate N706,129,383,000 (N706bn) in the 25-year concession period with Eyimba Economic City Consortium as the private sector investor.
Route 5 is the Shagamu–Benin 258km road which also has a concession period of 25 years, with AFC/Mota Engil Consortium as the concessionaire, and expected to generate N2,049,036,914,300 (N2trn).
The Abuja-Keffi-Akwanga 175.9km road is Route 6 which has gotten approval for a 25-year concession with expected revenue of N540,568,857,116 (N540bn) within the period. The concessionaire is China Harbour Engineering Company Ltd (CHEC).
The Kano-Shuari 100km road is the first of two routes on the corridor and is tagged as Route 7A. The concession period for this route is however 27 Years and Dafac Consortium is the concessionaire while the expected revenue within the period is N813,463,452,806 (N813bn). The second Route (7B) on this corridor is still undergoing the PPP process.
Route 9 is the Enugu–Port Harcourt 200km road which has a 25-year concession term and an expected revenue of N1,154,416,153 (N1.15trn) with Enyimba Economic City Consortium as concessionaire.
Route 11 is the 80km Lagos-Ota-Abeokuta road, which is expected to generate N1,575,841,857,561 (N1.57trn) in the 25-year concession period. The concessionaire is Africa Plus Consortium.
The 12th route approved by the Executive Council, is the Lagos-Badagry-Seme Border, a 79km route with a 25-year concession to AFC/Mota Engil Consortium and expected revenue of N1,352,993,335,000 (N1.35trn).
Negotiations on Route 3 which runs through Kano-Katsina and Route 7B, Kano-Maiduguri (Potiskum-Damaturu Axis) are still ongoing.
In the same vein, two other corridors: Route 8, Lokoja-Benin and Route 10, Illorin-Jebba, will be re-advertised in the second phase of the HDMI Project procurement process.
With the approvals, a total revenue generation of N11,543,821,736,086 is targeted.
Some other benefits of the project include job creation, bringing order on the routes, accountability and profitable entrepreneurship to the operations and overall better management and maintenance of federal highways.
The concessionaires will recoup their investment through the use of road tolls as well as other land value capture infrastructure, inclusive of, but not limited to rest areas, advertisement infrastructure and vehicle towing services.
