Business Hilights
Tracking Nigeria's Headline Business News Online

Advert space

Advert space

PPP has failed on 2nd Niger Bridge, Lagos-Ibadan Expressway—Fashola

Considering what can best be described as observed cold feet of supposed investors in the development of several key infrastructure projects across the country including the 2nd Niger Bridge construction and the Lagos-Ibadan Expressway expansion, the Minister of Power, Works and Housing, Barr. Babatunde Fashola, on Tuesday, made it clear before the House of Representatives Committee on Works, that PPP is dead.

Accordingly, he argued that for the two key projects to see the light of the day, the Federal Government must take full control of the multibillion naira projects now or allow them to become abandoned projects.

He noted further that the highly celebrated Public Private Partnership (PPP) option on both schemes will only continue to delay the projects, much as it appears attractive to core investors.

Business Hilights recalls that the Second Niger Bridge had two groups of core investors according to an existing arrangement prepared by the last administration of President Goodluck Jonathan.

By that arrangement, whereas the federal government will foot about 20 per cent of the cost, both Anambra and Delta States’ government will contribute 40 per cent while the remaining 40 per cent will come from corporate investors which the government had refused to make public.

However, towards the end of the former Governor Peter Obi administration in Anabmra, he came out to reject the PPP arrangement, saying that as the economic situation appears, Anambra can no longer foot the 20 per cent out of the 40 per cent to be contributed alongside with Delta State government.

It is also on record that the Delta State government followed Anambra State government to pull out of the 2nd Niger Bridge development PPP agreement citing similar reasons.

Further investigations by Business Hilights South East Bureau Chief showed that the pull out of the two states also raise confidence crisis in the minds of the veiled corporate investors on the bridge, thus leaving the construction expenditure on the shoulders of the federal government till now.

It would also be recalled that the key attraction for the corporate investors was the clause of tolling the bridge and road, but the emerging assumption of full responsibility by the federal government may definitely collapse the planned tolling as it would be an issue of marginalization if after building infrastructure across the federation with commonwealth, some will be tolled while others will be free.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More