FG Plans Fresh Concession of Lagos-Ibadan Expressway

Signals have emerged that the Federal Government may be considering a proposal to involve the former concessionaire of the Lagos-Ibadan Expressway, Bi-Courtney Highway Services Limited, in the funding of the completion and management of the reconstruction of the road.

According to a report by The Punch, at a closed door meeting held at the office of the President of the Senate on Wednesday evening with the President of the Senate, Bukola Saraki; Minister of Finance, Kemi Adeosun; Chairman, Bi-Courtney Highway Services Limited, Dr. Wale Babalakin; and representative of Motorways Assets Limited, Mr. Abdulrasaq Oyinloye in attendance,”The plan was to remove the road from the list of infrastructure on which the Federal Government was spending most of its resources on since the concessionaire would now look for funds to complete the road. The source, who declined to be named, said, “Following series of meetings facilitated by the Senate, the Federal Government today agreed with two private sector infrastructure companies on funding and timely completion of reconstruction work on the Lagos-Ibadan Expressway.

“They had a formal agreement on means of proceeding with the completion of the road within the most reasonable time and in a manner that is capable of creating a template for the future development of infrastructure in Nigeria.

“As part of the agreement, a new special purpose vehicle will have shareholders, including Bi-Courtney and Motorways, and the two companies are expected to collapse their current concessions into the new company.

“The Federal Government is expected to support the new consortium with financial instruments that will enable it to raise the necessary funding, the new entity must be operated to the highest standards of corporate management.”

Bi-Courtney and Motorways have not made any official statements on the development.