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The Federal Government reiterated that the Lagos-Calabar Coastal Highway contract adhered to the proper procurement procedures.
Minister of Works David Umahi clarified that the 700-kilometre, 10-lane highway was conceptualised as an Engineering, Procurement, Construction plus Financing (EPC+F) project. This model involves partial funding from the federal government.
According to The Nation, the Presidency addressed concerns raised by former Vice President Atiku Abubakar regarding a perceived conflict of interest involving President Bola Ahmed Tinubu’s son, Seyi, who sits on the board of a related company engaged in the project.
The Presidency stated there is no prohibition against Tinubu’s son engaging in legitimate business endeavours.
The project hailed as one of the largest in Africa, was granted to Hitech Construction Company Ltd. and will connect nine states.
Umahi emphasised that the approval process underwent scrutiny by the Bureau of Public Procurement (BBP) and was ratified by the Federal Executive Council (FEC) by legal requirements.
He said, “This project is an unsolicited bid on EPC+F.
“Under this model, the investor provides all designs, part of the financing and construction while the Federal Government provides the counterpart funding.
“The ministry received such a bid, worked on it and sent it to BPP.
“The BPP worked on it according to the Procurement Act and came up with a price slightly lower than the ministry’s price and even lower than the cost of similar projects awarded five years ago, like the Bodo-Bonny project.
“BPP issued a certificate of no objection on the project to the Ministry of Works in line with the Procurement Act.
“The Ministry of Works took the certificate of no objection to FEC, and FEC debated and approved it. The project followed due process.”
Umahi clarified the situation regarding the Environment and Social Impact Assessment (ESIA) report, stating that the Ministry of Environment granted initial approval in December 2023 and subsequently renewed it in January.
He emphasised that the ESIA certification is a continuous process, indicating progress.
The minister emphasised that legal procedures will conduct any demolition of properties along the route. He specified that only property owners with verified ownership documents will be eligible for compensation.