Okechukwu Emeka, Minister of State
for Transportation
All stakeholders comprising road users, transport owners (NARTO), potential concessionaires, investors and policy makers who gathered at the a-day forum organised by the Federal Roads Maintenance Agency (FERMA) on its road concession programme were not disappointed as they were better informed on how Nigerian roads could be maintained through concession scheme.
In a-day long programme, potential investors at the end of the programme lauded government’s initiative on road maintenance concession, noting that the scheme was adopted in developed countries to improve their road infrastructure.
Array of professionals who spoke on various issues ranging between the state of Nigerian roads and FERMA’s maintenance strategy through concession commended the initiative but expressed worry over the problem of inconsistency in government policies in Nigeria.
Potential investors also expressed concerns over legal and institution frameworks put in place to protect their investments; tolling of roads initiative for recouping investment and alternative route before the commencement of the programme.
Topics discussed at the forum include the options and structure for financing road maintenance concessions; best practice in concession programme; and legal and regulatory frame work for road concessions in Nigeria.
Managing Director of FERMA, Mr Olubunmi Peters allayed their fear, saying the agency Act of 2002 empowered it to enter into road concession agreement and that it has conducted an overview of legal framework to guide the concession process sequel to Mr. President’s Aproval.
He said the objective of the stakeholders forum was to bring all potentials concessionaires and investors on the best practices in road concession; and to bring about a forum where stakeholders could meet and interact.
The agency, he said was diligently putting together the documentation for the 2nd stage of the concession programme which involves the invitation of pre-qualified companies or consortia. He added that the Planning and Engineering department of the Agency has commenced studies on traffic counts and survey, pavement evaluation and route condition survey.
He assured that FERMA being the implanting agency would ensure that that the process followed due diligence and that there was no conflict of interest arises with any other agencies of government, state governments and multilateral agencies in the sector.
Justifying the need for road concession, the FERMA boss stated that there were 34,000 kilo meters of road in the country among which 35 percent were in collapsed state, 30 percent in poor structural condition and 20 per cent were fairly motorable
He said that it has been estimated that about N7 billion was needed to carry out the structural strengthening overlay of about 350 kilometers of road; and that the particular road segment would have its lifespan extended by an average of 10-15 years.
With systematic road strengthening and enhancement program, he said that an annual provision of N70 billion would provide the required strengthening for about 3,500 km on the road network According to him, with the road network estimated of about 34,000 km, 50 percent of the road network would have been upgraded in five years; and that in 8-10 years 85 percent of the federal roads network will be in good shape.
