Press Releases

Fashola Speaks On Value Of PPP As LCC Delivers 2 Kilometres Of Lekki Road

Apr 3, 2008 - Lagos State Governor Mr. Babatunde Fashola (SAN) on Thursday asserted that there is no alternative to the utilization of Private Public Partnership PPP as the most effective vehicle for the rapid expansion of critical infrastructure.

The Governor spoke at the Falomo Bridge loop venue of the commemoration of the successful refurbishment, upgrade and expansion of the first two kilometres of the Lekki Epe expressway toll road explained that the world over PPP was becoming the norm given the inability of government to solely meet the funding challenge for developing and maintaining much needed infrastructure.

He added that the commissioning of the first phase of the Lekki Epe Expressway rehabilitation and expansion project represents another major step forward in the ongoing renewal of public infrastructure in Lagos State .

According to the Governor, the construction of a new road, new school, a new health facility or stadium not only improves the quality of our physical landscape but increases the overall value of public and private assets while enhancing our competitiveness in the quest by global mega cities to attract scarce foreign investments.

Said he: “a massive investment in the maintenance and expansion of infrastructure is therefore very critical to any meaningful bid to achieve the Millennium Development Goals (MDGs) of reducing poverty by half by Y2015”.

He described the 30 year Concession agreement between the state government and Messers Lekki Concession Company for the construction and rehabilitation of the Lekki Epe Expressway as a novel way Public Partnership which is the first of its kind in Nigeria and Sub- Saharan Africa.

Governor Fashola commended the foresight and courage of the Asiwaju Tinubu administration in initiating the project and the tenacity which it displayed in ensuring that the project was not abandoned midway.

He explained that the Early Works Phase of the project which was started in August 2006 was stalled for almost two years due to the deliberate withholding of the Federal Support Agreement for the project.

Governor Fashola also said the delay resulted in the constant postponement of the effective date of the full take off of the project.

As a proactive government, Governor Fashola added that the state decided to enter into an abridged Works Agreement with the concessionaires and provided a N5Billion bank guarantee that enabled the continuation of work beyond the early works stage while awaiting the Federal Government assent to the Federal Support Agreement that would determine the new date.

He said in order to ensure that work proceeded non stop on this pivotal project pending the finalization of all necessary agreements with the Federal Government and other parties, a supplemental agreement to the Abridged Works Agreement was executed with the Concessionaire.

Governor Fashola said the supplemental agreement will enable commencement shortly of the additional scope of work from Kilometre 2 to the first roundabout at Kilometer 4 incorporating the expansion of the bridge at Exxon- Mobil and the continuation of the incoming 6 lane carriageway.

He also announced that a major breakthrough has been achieved with the execution by the Federal Ministry of Finance of the Federal Support Agreement that is so critical to the success of LIP.

Governor Fashola expressed appreciation to President Umaru Musa Yar’adua whose patriotic leadership has led to the development which will open avenues for similar funding arrangements with multi lateral financial institutions.

He also used the opportunity to ask for further support in the development of the Lagos Badagry Expressway which is the gateway to the West Coast, saying the state has already awarded contract for the design of road in multi lane super highway format.

He reiterated that the state has started taking steps by removing all illegal structures and claim of Right of Way, adding that the buy –in and understanding of everyone concerned to delivering the project is critical to its success.

He appealed to everyone to ensure that the road is well maintained and does not become a victim of social vices such as street trading and begging, warning that the investment on the road would be a colossal waste if armies of traders and beggars are allowed to become pests to those using the road.

He charged that: “as citizens we can stop these undesirable and even harmful activities if we resolve to donate to churches, mosques, orphanages and remand homes instead of beggars on the streets and also go to approved markets instead of shopping on the highways”

Governor Fashola emphasized that the possibility of earning income encourages these activities and it is in the power of the citizenry to bring them to end by deliberately making that income unavailable to beggars and street traders on the highways.

The Lagos State helmsman commended the concessionaires, Lekki Concession Company limited for its thorough, competent and professional handling of the project, saying he was impressed by the seriousness and courtesy displayed by the workers throughout the duration.

Also speaking, the Managing Director of the Lekki Concession Company (LCC), Mr. Opuiyo Oforiokuma describe the 30 year concession project as marking an important change in how essential road infrastructure and services are being financed and delivered in Lagos State and Nigeria, by formally leveraging the skills, experience, expertise and , financial resources of the Private sector.

He added that visionary and focused political leadership and continuity is essential to the successful delivery of long term projects as demonstrated by the passing of the Lagos Roads Law in 2004 to create the enabling legal framework for road concessions in the state.

Mr. Oforiokuma added that the 2004 Roads Law also ensured the establishment of the Lagos State Roads Private Sector Participation Board which was responsible for overseeing Lagos State PPP infrastructure projects and other concessions that will follow in the state.

Governor Fashola who was accompanied by members of the State Executive Council later drove through and inspected some sections of the completed road.