HDMI will open up highway economy, create jobs ― Fashola

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4 years ago

Babatunde Fashola

The Minister of Works and Housing, Mr Babatunde Fashola, has said that the Highway Development and Management Initiative (HDMI) will result in infrastructure and assets development as well as the creation of jobs for thousands of Nigerians.

According to the minister, “Apart from infrastructure and assets development, thousands of jobs will be created for Nigerians as the initiative will open up the highway economy with opportunities in various economic activities including fabrication of gantries and directional signages with advertising opportunities, towing van operations and auto repair stations, operation of rest areas and emergency services, among others.”

He added, “When fully operational, road users will enjoy first-class facilities on federal highways with directional signages, well-equipped rest areas, round-the-clock security patrol, and ambulance services for emergencies.”

The minister, who spoke at the official presentation of the Certificate of Compliance for the initiative by the Infrastructure Concession Regulatory Commission (ICRC) last Friday, in Abuja, added that that with the receipt of the certificate, the Federal Government would commence the procurement process for the highway concessions under the Highway Development and Management Initiative (HDMI).

According to the minister, the HDMI, a fully home-grown idea, would deliver a safer and enjoyable travel experience for Nigerian road users as travel time would be shortened, cost reduced and commercial activities stimulated.

He also said that the initiative would facilitate further development of Nigeria’s federal highway network by bringing in investment to improve efficiency, accountability, and profitable entrepreneurship to the operation, management and maintenance of all assets within the Right of Way on the highways.

Mr Fashola said that the initiative had further affirmed President Muhammadu Buhari administration’s commitment to infrastructure development funding which had been driven by the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme Order of 2018, the Presidential Infrastructure Development Fund (PIDF) being managed by the Nigeria Sovereign Investment Authority (NSIA) and the SUKUK Fund.

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He noted that through such initiatives, the Federal Government had been leveraging private sector funding and participation in the development of critical infrastructure across the country, adding that the HDMI was another innovation developed to attract the private sector.

Explaining further, he said the HDMI is an indigenous Land Value Capture scheme conceived by the ministry to develop Nigeria’s network of federal highway corridors and boost economic development along the Right of Way. He added that it would be executed in two parts comprising Value Added Concession (VAC) and Unbundled Assets Approval (UAA).

Mr Fashola appreciated and commended ICRC’s diligent appraisal of the initiative and for issuing Certificate of Compliance to the Federal Ministry of Works and Housing to proceed with the Highway Development and Management Initiative (HDMI).

In his welcome address the Permanent Secretary, Federal Ministry of Works and Housing, Babangida Hussaini, said that the development, expansion and maintenance of federal highways had increasingly become a herculean task to the government due to dwindling revenues and other compelling public service obligations.

He said: “It is to mitigate this challenge that the Ministry has adopted the option of exploring the Public-Private Partnership (PPP) arrangement, which seeks to employ the private sector’s technical competencies, managerial capabilities, and financial resources to salvage the federal roads networks.”

According to him, the PPP arrangement in the management of the nation’s highways would bring order, efficiency, accountability, and profitable entrepreneurship to the operation, management, maintenance of all assets within the nation’s right of way.

Earlier, the Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Chidi Izuwah, represented by Joel Micheal Ohtani, who presented the certificate to the Minister in Abuja on Friday 29th January 2021 said that the initiative would enable private sector participation in the management and maintenance of road assets through Public-Private Partnership (PPP) arrangements.

The Infrastructure Concession Regulatory Commission (ICRC) is charged with the responsibility of developing guidelines for monitoring contract compliance during construction, operation, and contract termination and supporting MDAs like the Ministry of Works and Housing in achieving such compliance.

Over time, ICRC had collaborated with the Ministry of Works and Housing to implement a cohesive national legal, policy and regulatory environment conducive to private sector investment in Nigeria’s roads and housing projects.

He commended the novel initiative and said that it would create jobs, boost the government’s revenue, and speed up Nigeria’s economic recovery, citing the popular Chinese proverb that says, “If you want to grow rich, build a good road first.”