The Federal Government yesterday insisted that the Lagos-Calabar Coastal Highway contract followed the procurement process. Minister of Works, David Umahi, said the 700-kilometre, 10-lane highway was conceived as an Engineering, Procurement and Construction plus Financing (EPC+F) project.
The model, he explained, entails part-funding by the Federal Government.
Also yesterday, the Presidency dismissed the allegation of conflict of interest raised by former Vice President Atiku Abubakar.
The former presidential candidate had claimed that President Bola Ahmed Tinubu’s son Seyi was on the board of a sister company executing the project.
But the presidency said nothing stops Tinubu’s son from pursuing his legitimate business interests.
The road project, regarded as one of the biggest in Africa, was awarded to Hitech Construction Company Ltd. It will link nine states.
Umahi, in a note, said the approval process went through the Bureau of Public Procurement (BBP) after consideration by the Federal Executive Council (FEC) as prescribed by law.
He said: “This project is an unsolicited bid on EPC+F.
“Under this model, the investor provides all designs, part of the financing and construction while the Federal Government provides the counterpart funding.
“The ministry received such a bid, worked on it and sent it to BPP.
“The BPP worked on it according to the Procurement Act and came up with a price slightly lower than the ministry’s price and even lower than the cost of similar projects awarded five years ago like the Bodo-Bonny project.
“BPP issued a certificate of no objection on the project to the Ministry of Works in line with the Procurement Act.
“The Ministry of Works took the certificate of no objection to FEC and FEC debated and approved it. The project followed due process.”
Umahi also cleared the air on the Environment and Social Impact Assessment (ESIA) report, saying that preliminary approval was issued in December 2023 by the Ministry of Environment and renewed in January.
According to him, the ESIA certification is progressive.
“We have a certified ESIA to start the project.
“We have redesigned the route to put a human face to the decision and to minimise demolition of permanent infrastructure.
“The process of ESIA involves constant stakeholders’ engagement of which many have taken place and I even participated in two in Lagos.
“We are doing everything possible to follow the law,” he said.
The minister maintained that the removal of properties along the route is subject to the rule of law.
He clarified only property owners with proven titles will receive compensation.
Shanties and those with property within the 250-meter shoreline setback without a Federal government title would not be compensated as it is a legal matter, he explained.
Umahi added: “The committee is not in charge of ramp or anything else but to verify those to be paid compensation, authenticate and pay.
“But where there is a title problem, it will need a presidential waiver for such to be paid.
“It is only those with proven titles that will be paid after undergoing all the verification processes.
“We have shortened the process. No delayed files, so property owners are assured that within 72 hours, we will do the needful.
“Anyone with a title within 250 meters and it is not a Federal government title, then only the President can give a waiver for the person to be paid.”
The project is a cornerstone of the infrastructure plan of the Tinubu Presidency.
It has received the support of many Nigerians, including governors of the Southsouth states who last week after their meeting described it as laudable.
They pledged their unflinching support for it.
However, opposition figures like Atiku and Peter Obi have been using the project as their point of criticism of the government.
Edo State Governor Godwin Obaseki, Chairman of Southsouth Governors’ Forum, reading the communiqué of the meeting, said: “We thanked President Bola Tinubu, for commencing the construction of the coastal road from Lagos to Calabar and appealed for speedy completion.
“Work should also commence from the Calabar end.”
