Lagos-Calabar coastal highway costs N4bn per kilometre – Umahi

Minister of Works, David Umahi

The Minister of Works, David Umahi, clarified that the government is constructing the Lagos-Calabar coastal highway at a cost of N4 billion per kilometer, refuting former Vice President Atiku Abubakar's claim of N8 billion per km.

This implies that the entire project will amount to N2.8 trillion. Umahi dismissed allegations of irregular procurement processes, stating that the contract was awarded on a counter-funding basis, not through Public-Private Partnership as previously asserted.

Umahi revealed these details during an appearance on the Television Continental News Hour program in Lagos. He addressed concerns raised by Atiku Abubakar regarding the contract awarded to Gilbert Chagoury's Hitech without competitive bidding.

Umahi clarified that despite rising construction costs due to commodity price inflation and supply chain disruptions, the ministry is committed to transparency and will disclose the true cost. He confirmed that the project would span eight years and emphasized the use of concrete pavement on the four-lane carriageway.

Contrary to earlier statements indicating a Public-Private Partnership model with Hitech Construction funding the project, Umahi clarified that the administration never envisaged the project under a PPP arrangement but an Engineering, Procurement, Construction, and Finance program similar to the Abuja-Makurdi road project.

He explained that the federal government will provide counterpart funding ranging from 15% to 30% under this arrangement. This contradicts earlier statements made by the minister regarding the involvement of Hitech Construction under a PPP model.

Umahi defended the procurement process, stating that the ministry followed due process and invited companies with specialized skills for specific tasks, as permitted by procurement laws. He highlighted the engagement of Hitech based on their expertise, with no public bidding process involved.

Overall, Umahi aimed to clarify misconceptions and provide transparency regarding the Lagos-Calabar coastal highway project and the procurement process involved.