The federal government (FG) says it expects a capital investment of N1.12 trillion from the new highway development management initiative (HDMI).
Babatunde Fashola, minister of works and housing, who disclosed this on Tuesday, said the HDMI is made up of two categories namely; the value-added concessions (VAC) and the unbundled assets approvals (UAA).
The FG had earlier announced the receipt of the certificate of compliance signalling the commencement of the procurement process for the concession of 12 federal highways under the HDMI.
Fashola listed the 12 roads considered for the first phase of the VAC as Benin-Asaba, Abuja-Lokoja, Kaduna-Kano, Onitsha-Owerri-Aba, Sagamu-Benin, Abuja-Keffi-Akwanga.
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Others are Kano-Maiduguri, Lokoja-Benin, Enugu-Port Harcourt, Ilorin-Jebba, Lagos-Ota-Abeokuta and Lagos-Badagry.
“The initial capital investments that we foresee is something in the order of NGN 1,134,690,048,000.76 and the employment potentials are an estimated 50,000+ direct jobs and 200,000+ indirect jobs,” he said.
Under the VAC, the road pavement and entire right of way is concessioned for development and management by the concessionaire.
The UAA provides opportunity for small businesses to take advantage of the commercial opportunities that are available along the right of way.
He also said a procurement portal, that will receive applications from individuals who wish to build, operate and maintain highways, will be open on Monday, March 29.
