Tollgates return as FG okays individual licences to build, maintain roads

The Federal Government says it will grant qualified individuals licences to build, operate and maintain roads.

A document released by the Federal Ministry of Works and Housing, said, “The main objective of the initiative is to attract expertise and sustainable investment/funding in the development of road infrastructure and maximise the use of assets along the right of way and develop other highway infrastructure.”

Already, the ministry has received approval to commence the concession process for 12 federal highways as a pilot project.

This may also signify the return of tollgates as concessionaires will have to recoup their investments.

The Outline Business Case Certificate of Compliance to commence procurement process for the concession of 12 federal highways was issued by the Infrastructure Concession Regulatory Commission.

The ministry also stated in the document the new arrangement was “not really about revenue; it’s about the expected injection into the economy. The estimated private sector investment required for the development and maintenance of the 12 routes is N1.34 trillion and the impact such investment will have on the economy cannot be overstated.

“A minimum 50,000 direct jobs and over 200,000 indirect jobs are envisaged to be created spanning construction works, installations, steel fabrication, security, hospitality, vehicle repairs, waste management and administrative work as the value chain along the highway economy is activated.”

It stated that the concession process would be classified into two categories — value-added concession and unbundled assets approvals.

For the value-added concession, the road pavement and entire right-of-way would be on concession for development and management by the concessionaire, it stated.

While for the unbundled assets approvals initiative, “approvals/permits are issued for individual assets on the right-of-way on a build, operate and or maintain basis.”

The ministry said the concessionaire agreement would provide adequate highway services through the development of revenue-generating assets along the highways.

‌it stated, “Both approaches aim to provide adequate highway services through the development of revenue-generating assets along the highway.

“This is key to maintaining the functionality of the highway as well as engaging and generating wealth for indigenous small and medium enterprises.”