Minister of Works Engineer Dave Umahi has approved the review of existing guidelines for private sector participation in Nigeria’s road infrastructure development under the Highway Development Management Initiative (HDMI).

n a statement signed by the Special Adviser on media to the works minister, Orji Uchenna Orji, the review aims to strengthen the concession policy for concessionaires with the goal of attracting private sector funding and investments.

According to the statement, the review includes an addendum that was made public after a two-day stakeholder meeting, which included concessionaires, concluded in Abuja on Wednesday.

“Part of the new addendum states, among other things, that the concessionaires shall construct compulsory facilities which shall include CCTV and solar streetlights, rest areas and any other additional facilities needed to improve travel safety and comfort of travellers on the entire project route,” he said.

The statement further stated that the two-day meeting aimed to develop a more realistic, transparent, and productive approach to financing road projects under Public-Private Partnerships for construction and maintenance.

It also stated that the meeting identified certain articles and clauses in the existing concession agreements executed on May 23, 2023, that required review.

The review included clauses such as “value for money, strengthen long-term collaboration, transparency and accountability, as well as mitigate‎ potential Put-Call Option Agreement and litigation.”

According to Uchenna, during the meeting, the minister raised issues such as: Put-Call Option Agreement (PCOA), additional facilities, performance security, shifting of encumbrances on site, the role of the independent engineer, competing road/alternative road, change in project scope, revision of toll fees, force majeure, and stakeholder consensus building to ensure active citizen participation in the effective commencement of project construction, tolling, and maintenance.

He maintained that the minister pointed out that some contractors were already present at some of the project sites before the concessionaires signed the agreements, and that innovations had been introduced to add value to the works sector. Therefore, he emphasised the need for a review of the existing agreement and its addendum.

He mentioned some of the criteria for the concessionaires for the activation of their projects, including, “their obligation to ensure mutual termination of existing contracts before taking over their respective sites, the need to show evidence of their capacity and readiness, including proof of source of funds for the project, payment of all outstanding debts owed to the existing contractors, evidence of technical and financial competence, and availability of company or partner’s equipment.”

The minister, however, assured that the ministry would not disengage any existing contractor from the site in any of the projects unless the conditions precedent are complied with by concessionaires.

Present at the meeting were the Honourable Minister of State for Works, Bello Muhammad Goronyo, the Permanent Secretary of the Cabinet Affairs Office of the Secretary to the Government of the Federation, Dr. Emanso U. Okop, as well as representatives from the Federal Ministry of Justice and the Federal Ministry of Finance.

Also in attendance at the meeting were representatives from the Debt Management Office, Bureau of Public Procurement, Infrastructure Concession Regulatory Commission, Bureau of Public Enterprises, the Public-Private Partnerships Unit team of the Federal Ministry of Works, and directors of key departments.

Concessionaires who attended the meeting included: Africa Plus/BAAECC, Africa Finance Corporation, Morta-Engine, Morta-Engil, Balosh Integrated Services, LIB Concession, and Greg Jane International Limited.