Lagos cancels Lekki-Epe Expressway concession....
Controversy surrounding the management
of the Lekki-Epe Expressway took a new turn on Tuesday as the Lagos
State Government announced the termination of its concession agreement
with the Lekki Concession Company.
Already, the state House of Assembly has
approved a supplementary budget of N7.5bn to enable the government to
fund the acquisition of the existing concession right of the expressway.
The LCC was mandated under a 30-year
Build, Operate and Transfer agreement to upgrade, expand and maintain
the about 50-kilometre road (Phase I), and construct another 20km of
coastal road (Phase II) along the Lekki corridor.
But the firm and the state government
came under severe attacks when they introduced what the residents
considered as high tolls on the road in 2011 after significant progress
was made in the first phase.
The decision of the state government to
terminate the concession agreement, it was learnt, followed the
lawmakers’ approval of the supplementary budget, which gave it the right
to acquire the existing concession rights and toll revenue benefits
held by the concessionaire.
Governor Babatunde Fashola had in a
supplementary budget proposal letter to the state House of Assembly
dated August 19, 2013, requested it to amend this year’s budget owing to
unforeseen developments in terms of the state’s internally generated
revenue.
Fashola had said, “The proposal for
further amendment is largely predicated on the need to fund the
acquisition of the existing concession, right and toll revenue benefit
held by the Lekki Concession Company, the concessionaire for the
Eti-Osa-Lekki-Epe Expressway. This will effectively accelerate the
transfer of ownership of the road to the state, leaving the state with
wider policy options with regards to that important infrastructure.
“In order to address these issues, we
have proposed a two-prong approach namely: re-ordering some expenditure
provisions and also directing supplementation of the year 2013 budget.
This will entail an increase in the overall budget size by N7.5bn. This
is against the background of a projected shortfall of N22.5bn in
budgeted internally generated revenues, which now need to be covered by
the additional borrowings.”
The Assembly gave its approval to the request on Tuesday in a proposal read on the floor by the Clerk, Mr. Ganiyu Abiru.
The commissioners for Budget and
Economic Planning, Mr. Ben Akabueze; Finance, Mr. Ayo Gbeleyi; and Works
and Infrastructure, Mr. Obafemi Hamzat, were at the House to defend the
proposal.
Following the latest amendment, the revised budget has thus increased from N499.6bn to N507.105bn.
Users of the expanded road have had to
part with different amounts, depending on their class of vehicles. The
amounts rage from N50 for motorcycles to N120 for saloon cars and
tricycles; N150 for Sports Utility Vehicles, minibuses and pick-up
trucks; N80 for commercial mini-buses; and N250 and N350 for light
trucks and heavy trucks, and buses with two or more heavy axles,
respectively.
Fees are currently being collected at the first toll point called the Admiralty Plaza.
The Conservation Plaza was built about
10km away from the first tolling point bewteeen the Chevron Drive and
Oluwanisola Estate, but the collection of tolls has not started.
A human rights lawyer, Mr. Ebun
Olu-Adegboruwa, took the matter to court to stop the LCC and the state
government from enforcing the toll collection until the 10km alternative
route was constructed for those that might not use the road.
Calls and text messages to the mobile
phone number of the Commissioner for Information and Strategy, Mr.
Lateef Ibirogba, were ignored; while the Special Adviser on Media to the
Governor, Mr. Hakeem Bello, said he had yet to get the details and
promised to call back when he did, but never got back.
Calls put through to officials of LCC were unanswered, while text messages sent to them were not responded to.