FG to issue N100bn bonds for Lagos-Ibadan Expressway

The Federal Government on Tuesday said it would issue road and infrastructure bonds worth N100bn to finance the rehabilitation and reconstruction of the Lagos-Ibadan Expressway.

It also said that N25bn was earmarked for the project in this year’s budget, while the same amount would be provided in 2015, while government institutions would generate N17bn for the reconstruction work on the road. The Minister of Works, Mr. Mike Onolememen, said this in Abuja when a delegation of the Peoples Democratic Party led by Senator Ibrahim Mantu paid him a courtesy visit.

Onolememen said, “Government can decide how it funds its road projects and government has made commitments up to N50bn on that road. In 2014 alone, government budgeted N25bn for that road and that is after mobilising the contractors last year.

“And in 2015, we will repeat another N25bn on the road. We also have government institutions that are also putting money down up to about N17bn for that road.

“And we have decided as a government and ministry that in order to fast-track the completion of that road, we are going to be issuing road bonds and infrastructure bonds, where we will raise a balance of N100bn. This is a novel way of funding infrastructure development projects across the world, and that is what can guarantee the quick delivery of that road.”

The minister said attempts to discredit the government’s work on the Lagos-Ibadan Expressway were being made by people who had personal interest as against national interest, adding that those people were in the habit of sponsoring spurious reports about the road.

He said, “The Lagos-Ibadan Expressway, in 2009, was given out on concession to a Nigerian concessionaire and after three years, nothing happened on the road and Nigerians were dying daily on that road.

“In fact, it was a nightmare to travel through that road. As a responsible government, we decided to terminate that concession because it had failed completely.”

Onolememen said the government was further provoked by the actions of the concessionaire as it failed to abide by the terms of the original agreement.

He added, “The concession was entered into in 2009, and after three years, the concessionaire could not even tar a kilometre of the road. And there was no reason for any responsible government to tolerate that situation, particularly when the concessionaire decided to abandon the contract agreement and was brandishing a brand new contract agreement for us to implement.

“So, it wasn’t possible and we decided to do the needful; which was to terminate that concession and to take the road back. We decided to construct that road in the interest of Nigerians. In fact, since that road was re-awarded to Julius Berger Nigeria Plc and RCC Nigeria Limited, construction work has commenced earnestly on it.”

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