The Minister of Works, David Umahi, has refuted claims made by former Vice President Atiku Abubakar regarding the cost and procurement process of the Lagos-Calabar coastal highway project. Umahi clarified that the government is constructing the highway at a cost of N4 billion per kilometer, contrary to the N8 billion per kilometer alleged by Atiku. This revelation implies that the total project cost will amount to N2.8 trillion.
Umahi made these remarks during an appearance on the Television Continental News Hour program in Lagos. He dismissed assertions that the project did not follow due procurement processes, stating that the contract was awarded on a counter-funding basis, not through Public-Private Partnership as claimed.
Atiku had raised concerns about the transparency and cost efficiency of the project, questioning why it was allegedly awarded without competitive bidding. He also queried the allocation of N1.06 trillion for the initial phase of the project, which spans from Eko Atlantic to the Lekki Deep Sea Port.
In response, Umahi explained that despite the challenges of inflation and supply chain disruptions in the construction industry, the ministry remains committed to cost-effectiveness. He assured that the true cost of the project would be disclosed.
Umahi further clarified that the project is slated for completion within eight years, with a cost of N4 billion per kilometer attributed to the use of concrete pavement on the four-lane carriageway. He debunked claims of improper procurement, emphasizing that the project is executed under an Engineering, Procurement, Construction, and Finance program, akin to the Abuja-Makurdi road project.
Contrary to earlier statements suggesting a Public-Private Partnership model, Umahi clarified that the project is funded through Engineering, Procurement, Construction, and Finance, with the federal government providing counterpart funding. He explained that the involvement of Hitech Construction was based on their expertise and capability, with no public bidding process conducted for the project.
Umahi underscored that all procedures followed due process, including scrutiny by the Bureau of Public Procurement and approval by the Federal Executive Council.
