Umahi’s Estimate: Lagos-Calabar Coastal Highway Sets Cost at N4bn per Kilometer

Umahi’s Estimate: Lagos-Calabar Coastal Highway Sets Cost at N4bn per Kilometer

The Minister of Works, David Umahi, has clarified the cost and procurement process of the Lagos-Calabar coastal highway project, countering claims made by former Vice President Atiku Abubakar regarding the project’s cost and procurement method.

Umahi stated that the government is constructing the Lagos-Calabar coastal highway at a cost of N4 billion per kilometer, contrary to Atiku Abubakar’s claim of N8 billion per kilometer. This suggests that the total project cost would amount to N2.8 trillion. He emphasized that the project follows due procurement process and was awarded on a counter-funding basis, not through a Public-Private Partnership (PPP) model as previously claimed.

Regarding the procurement process, Umahi explained that the project was awarded under an Engineering, Procurement, Construction, and Finance (EPCF) program, similar to the arrangement used for the Abuja-Makurdi road project. He clarified that there was no intention for the project to be carried out under a PPP model, contrary to earlier statements. Umahi also mentioned that the project will involve negotiated counterpart funding ranging between 15 and 30 percent.

Umahi further addressed the involvement of Hitech Construction in the project, stating that they were selected based on their expertise and capacity. However, he clarified that there was no public bidding process for the project, as the Federal Ministry of Works is permitted to invite companies with specialized skills for specific projects.

While Umahi’s recent statements provide clarity on the project’s cost and procurement method, they contradict previous claims made in September 2023, where he announced the project to be under a PPP model with Hitech Construction funding the project. Despite this inconsistency, Umahi emphasized that the project followed due process and procurement acts.

 

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