Lagos Ibadan Exp Way Reconstruction May Be Completed In 1 Yr..Minister

The reconstruction of the Lagos-Ibadan expressway will be completed before the set date of 48 months.

This was disclosed at the weekend by the Minister of Works, Mike Onolememen, who declared that the project could be delivered 12 months earlier than the initial forty-eight months schedule.

Speaking in his office in Abuja, the minister expressed delight with the pace of work so far by the two construction companies handling the project - Messrs Julius Berger Nigeria Limited and Reynolds Construction Company (RCC)– while also insisting that the project, worth N167 billion, would be executed through a financing mechanism between the Federal Government and the private sector.

“What we have done is that the Federal Government will contribute about N50 billion into the common purse. From the 2014 budget alone, we will be contributing N25 billion, while the final N25billion, which will form the total commitment of the Federal Government to the project, will be part of the 2015 budget,” he said.

“But beyond that, the outstanding money which totals about N120 billion is being raised through a private finance initiative. That was how the project was approved, and that is how we are actually realising it,” the minister said further.

The minister listed the private finance initiative driving the project as including the Infrastructure Bank, which is the fund arranger; the Nigeria Sovereign Investment Authority, as well as a number of banks and other financial institutions.

He pointed out that as a result of the funding arrangement, the road would be tolled so as to enable investors recoup their investments and also maintain the road.