The Nation Newspaper

Tag: Benin-Asaba Expressway

  • Fed Govt begins Benin-Asaba Expressway project with private funding

    Fed Govt begins Benin-Asaba Expressway project with private funding

    The Federal Government, in partnership with Africa Plus Partners, has initiated the construction of the 125km Benin–Asaba Expressway in Edo State.

    Edo Governor Monday Okpebholo, who represented President Bola Ahmed Tinubu, conducted the groundbreaking ceremony at the project site in Benin City.

    He praised the project’s financing structure, saying: “This is a legacy project. For private investors to risk their capital, it shows belief in the President’s vision and the future of our economy.”

    Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, described the project as a significant achievement in infrastructure financing.

    He said: “What you see on the front page of the pamphlet will be delivered—because the cash is there. This is not reliant on direct federal funding.

    “Africa Plus Consortium, backed by credible investors, has put forward the full capital commitment under the enabling policies of President Bola Tinubu.

    “One hundred and twenty-five kilometres of clean, efficient, and well-lit road with solar super-highway will be delivered between Benin City and Asaba, as obtainable in modern highways.

    “The money (for the reconstruction of the Benin-Asaba Expressway) is coming from the private sector and investors.

    “It is a project whereby the private sector, believing in the enabling environment that has been created for investors, and believing in the policies of President Tinubu, have put their money down to complete the road in record time.

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    “In view of the financing model, it is not relying on contract from the Federal Ministry of Works or funding by the Federal Government.

    “This is one road in Edo State, but there are many other roads waiting to be inaugurated week after week, month after month, according to this particular model, which brings private and public sectors together in a partnership that is the commitment, the policy, the determination and the strategy of President Bola Ahmed Tinubu to deliver world-class infrastructure in record time, in a sustainable financial model.”

    Minister of Works, Senator David Umahi, described the project as a “cashless model,” and stated that this type of funding is both possible and will be seen more in the future.

    Umahi insisted that Africa Plus Partners Nigeria Limited, the road developer, was capable of delivering quality the road in record time.

    The event was also attended by Delta State Governor Sheriff Oborevwori, who was represented by his deputy, Chief Monday Onyeme.

    The representative of Edo North Senatorial District, Senator Adams Oshiomhole; Edo Deputy Governor, Dennis Idahosa; Speaker of Edo House of Assembly, Chief Blessing Agbebaku; a former governorship candidate of the All Progressives Congress (APC) in Edo, Pastor Osagie Ize-Iyamu; Edo Chairman of APC, Jarrett Tenebe; and other eminent personalities were present.

    Oborevwori also pleaded with Umahi to extend the reconstruction beyond the popular Summit Junction in Asaba, to the Asaba/Onitsha Bridge.

    In response, the minister said the road project would be taken to the second Niger Bridge, adding that 30 per cent mobilisation fee had been released.

  • ‘Work to begin on reconstruction of N228b Benin-Asaba Expressway’

    ‘Work to begin on reconstruction of N228b Benin-Asaba Expressway’

    Edo State Commissioner for Roads and Bridges, Ethan Uzamere, has said work is about to begin on N228billion reconstruction of the deplorable Benin-Asaba expressway.

    He confirmed that Delta State Government was part of reconstruction agreement, for residents and travellers to benefit from the real dividends of democracy.

    Uzamere spoke yesterday at his office in Benin during a news conference.

    Governor Godwin Obaseki on January 31, at the Government House, Benin, signed N228 billion agreement with Infrastructure Corporation of Nigeria (InfraCorp) and AAA Infrastructure Nigeria Limited (Triple A Infrastructure), for the reconstruction of the strategic road.

    The road project is to be funded by Triple Infrastructure and InfraCorp, and supported by Edo State Government as an equity investor, under the 25-year Highway Development Management Initiative (HDMI) Concession to Africa Plus Partners.

    Sixty kilometres of the road are in Edo State, and a large portion of the road start from Ring Road, Benin, through Abudu and Agbor to Asaba.

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    Obaseki described the partnership as a great financing model for unlocking infrastructure development in the country, while calling for sustained partnership between states and the Federal Government.

    He noted that the Federal Government did not have the kind of money required to rebuild major roads to the standard they should be, stressing that the N228 billion was more than a quarter of the entire budget of the Federal Ministry of Works.

    The Chief Executive Officer (CEO) of Triple A Infrastructure Nigeria Ltd, Mr. Ike Chioke, said the agreement with Edo State Government was for the complete reconstruction of the Benin-Asaba expressway, under the HDMI Concession to Africa Plus Partners.

    The Managing Director of Triple A Infrastructure, Niran Ajakaiye, revealing further details of the partnership, said it would be a world-class project, noting that the road construction would begin from Benin in Edo State to Asaba in Delta State, terminating at the Second Niger Bridge.

    Commissioner for roads and bridges said the Obaseki administration had already constructed over 700 kilometres of internal roads.

    He said Edo State had high vehicular traffic, in view of its location, urging the Federal Government to prioritise the rehabilitation of roads in the state.

    He described the performance of Obaseki’s administration as impressive, especially in infrastructural development.

    Uzamere said the reconstruction of Benin-Abraka road was ongoing, while Ring road in Benin was being redesigned.

    He admonished Nigerians, especially leaders, to think differently, in terms of projects’ financing.

  • Obaseki, firms seal N228b deal on Benin-Asaba Expressway

    Obaseki, firms seal N228b deal on Benin-Asaba Expressway

    Edo State Governor Godwin Obaseki yesterday signed a N228 billion agreement with the Infrastructure Corporation of Nigeria (InfraCorp) and AAA Infrastructure Nigeria Limited (Triple A Infrastructure) for the reconstruction of the Benin-Asaba Expressway.

    The road project will be funded by Triple Infrastructure and InfraCorp and supported by the state as an equity investor, under the 25-year Highway Development Management Initiative (HDMI) Concession to Africa Plus Partners.

    Signing the deal at the Government House, Benin, Obaseki who described the partnership as a great financing model for unlocking infrastructure development in the country, called for sustained partnership between states and the Federal Government.

    He said: “Between 2000 and 2001, when a committee was set up to redesign the pension arrangement in Nigeria, the whole idea was to move into a contributory pension arrangement, and begin a process of capital formation in the country, by getting workers in the country to contribute their pension and these pensions will be invested in rebuilding the infrastructure of this country.”

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    “That was the dream 30 years ago. I was on that committee, along with Adams Oshiomhole. It was the committee that gave birth to the pension funds that we have in the country today.

    “Those pension funds have in excess of N16 trillion under savings, but no outlet to invest them on, but forced to invest in short-term papers issued by the Federal Government.

    “With transactions like this coming on stream, we will be creating opportunities for these pension funds to take our savings and put them into investments that will really develop Nigeria. This transaction for us is significant and we believe and hope that it is the first of several that will come.”

    On the economic benefits of the project, Obaseki said: “The Benin-Asaba artery is very critical to the economy of Nigeria, because it is that route that moves bulk of goods from the port in Lagos State, in the West, to the Eastern and Southsouth parts in Nigeria. You can imagine the cost that transporters and logistics managers have to bear and which has been translated into prices, because of the bad nature of the roads.

    “60km of this road is in Edo State, and a large portion of this road starts from Ring Road, through Abudu and Agbor to Asaba. The Edo State Government, at some point in time, had to invest money to do remedial work on that road, because we were almost cut off.

    “I am glad that the Federal Government has now concessioned the road and not just to anybody, but people who know what to do and have real money, not portfolio managers who sign contracts and sell the same.

    “We know the winners of these concessions very well and this transaction we believe in and it is very core to the economy of Edo State. As a state, we have no hesitation to also invest our money on that road. We have already started investing as we have spent almost N1 billion doing remedial work on the road. Now that we have been offered equity shares on this road, I want to commit that the Edo State government will invest in this concession to fast-track the process and any other concession of roads that goes through Edo State.”

    On the completion of the project, Obaseki added: “Having started with this project, I want to implore you to fast-track the process, so that people will see that it is real and try to overcome the challenges caused by the rainy seasons.

    “I hope that the Federal Ministry of Works would now consider very urgently to terminate the Benin-Auchi road contract and put up the road for concession, as the Edo State government will support that initiative, because that is the way to go.

    “Let us tell ourselves the truth, the Federal Government does not have the kind of money required to rebuild the roads to the standard they should be, and this is the way to go. The cost of this road, N228 billion, is more than a quarter of the entire budget of the Federal Ministry of Works. For us to continue the old model of expecting the Federal Ministry of Works to reconstruct our road is like a pipe dream.

    “This is a call on the Federal Ministry of Works to urgently terminate all contracts of the Benin-Auchi road and put up that road quickly for concession like this and the Edo State government will support it.”

    The Chief Executive Officer (CEO) of Triple A Infrastructure Nigeria Limited, Mr. Ike Chioke, in his remarks, stated that the agreement with Edo state government was for the complete reconstruction of the Benin-Asaba expressway, under the HDMI Concession to Africa Plus Partners.

    The Managing Director of Triple A Infrastructure, Niran Ajakaiye, while revealing further details of the partnership, reassured that the project would be world-class, noting that the road construction project would commence from Benin in Edo dtate, to Asaba in Delta state, and terminate at the Second Niger Bridge.

    Ajakaiye said: “What we are going to do is expand and upgrade the road to world-class and best standard road. In some locations, we are expanding to 10 lanes, and in others, eight lanes and so on. We are glad to have the Edo State government partner with us on this project as an equity investor.

    “Once this road is done, it will be a world-class asset for the benefit of Edo and Delta States, and will open up the corridor to the East and the West of the country. Thanks for partnering with us.”