The Federal Government yesterday said that private investors will bear 70 per cent of the N167billion rebuilding cost of the Lagos-Ibadan Expressway to ensure its timely completion, while the FG will bear 30 per cent of the cost, which is about N50billion.
This clarification was contained in a statement in Abuja yesterday by the Federal Ministry of Works through its Director of Information, Mr. Bisi Agbonhin.
The statement said: “It is worthy of note that from inception, the Engineering Procurement and Construction (EPC) contracts for implementation of the road project was awarded by the Federal Ministry of Works with attendant Bureau of Public Procurement (BPP) and Federal Executive Council (FEC) approvals to the two contractors.
“This was also subject to the finances scheme put in place through the private sector-led project finance; infrastructure finance facility with the Federal Government of Nigeria providing 30 per cent of the project cost (i.e. N50billion), while the balance of 70 per cent would be provided by the investors and financiers to the project. This arrangement will enable completion of the project on time and on budget. “
“Contrary to the misinformation that the Federal Government has voted N23million in the 2014 budget for hiring the services of consultants on PPP scheme, the Federal Government has made a total provision for the sum of N25Billion as her own counterpart funding in the 2014 budget, with a view to providing the balance of N25billion in the 2015 budget.”