BY EMMANUELLA OGHENETEGA
THE Minister of Works, Engr. David Umahi, has concluded a meeting with stakeholders and concessionaires with the aim of having a more realistic, transparent and productive approach to financing, in the construction and maintenance of road projects under Public-Private Partnerships.
This, is in efforts to strengthen the concession policy for concessionaires and to enhance funding and private sector participation in the road infrastructure development under the Highway Development Management Initiative, (HDMI),
In the two-day meeting held at the conference hall of the Federal Ministry of Works, Mabushi-Abuja, the minister identified certain articles and clauses in the existing concession agreements executed on 23rd May 2023 that needed to be reviewed both in the original concession agreement and the proposed addendum to ensure value for money, strengthen long term collaboration, transparency and accountability as well as degravitate potential Put- Call Option Agreement and litigation.
He raised issues for discussion including the issue of Put-Call Option Agreement (PCOA), additional facilities, performance security, shifting of encumbrances on site, the role of the independent engineer, competing road/ alternate road, change in project scope, revision of toll fees, force majeure and stakeholder consensus building to ensure active citizenship participation in the effective take-off of project construction, tolling and maintenance.
He recalled that contractors were already on some of the project sites before the signing of the concession agreement by concessionaires and that innovations had been introduced to add value to the works sector , hence, the need for a review of the existing concession agreement and its addendum.
