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The Federal Government, through the Ministry of Works, has commenced plans to implement a cashless tolling system on the Abuja-Keffi expressway and the dualised Keffi-Akwanga-Markurdi road.
This was announced as the Minister of Works, David Umahi, inaugurated a committee to finalise the implementation framework on Thursday in Abuja.
A statement from the Special Adviser on Media to the Honourable Minister of Works, Orji Uchenna Orji, stated that the initiative is part of measures by the current administration to revolutionise road infrastructure development and stimulate economic growth.
The PUNCH recalls that the 221.8km Keffi-Akwanga-Markurdi road, procured under the Engineering, Procurement, and Construction–Finance model, was funded up to 85 per cent by China Exim Bank, with 15 per cent counterpart funding from the government. The project was executed by the China Harbour Engineering Company Limited.
The project cost $542 million, with CHEC handling the road construction while China Exim Bank provided 85 per cent ($460.8 million) of the funding in the form of Preferential Export Buyer’s Credit.
A section of the agreement stated that the company would toll the road and then recoup the money for the government to pay back the loan segment of the project.
Speaking during the inauguration ceremony held at the Ministry’s headquarters, the Minister of Works stated that the cashless tolling system is a strategic programme under the Highway Development and Management Initiative, aimed at promoting a strong and sustainable transportation ecosystem.
He said, “The cashless tolling system is a strategic programme under the Highway Development and Management Initiative aimed at promoting a strong and sustainable transportation ecosystem.
“This is one of the cardinal strategies of President Bola Tinubu towards realising the desires of our people in road sector development.”
Umahi further urged the committee to utilise the principles outlined in the Terms of Reference to create a comprehensive implementation master plan aimed at achieving the economic and social goals of the Highway Development and Management Initiative.
He said, “The committee working on the terms of reference is expected to develop the cashless tolling system implementation framework and make appropriate recommendations regarding the potential for relief stations and a good physical environment along the corridors, as well as proffer practical solutions to the challenges of implementing cashless toll collection in the Nigerian environment.
“We must also, as part of the assignment, develop relief stations. Relief stations are what you see on overseas expressways, where you have a lot of amenities such as supermarkets, small clinics, security outfits, and several other facilities, including parks, lorry parks, and tow vans.
“The idea of Mr President is that we should have a maximum response time of 10 minutes on our highways, meaning that in the full development of this route, part of the assignment will involve installing CCTV cameras and having solar lighting along the entire route of the project.
“And so, we will be able to enhance security on our roads and have a station at the relief centre where personnel will monitor the vehicles so that within 10 minutes of any incident along the route, security personnel will be able to respond within that timeframe. This is the idea of Mr President for our major highways.”
Umahi added that the initiative is to ensure sustainable private sector investment and improve the quality and quantity of road assets in Nigeria to propel rapid economic development.
Earlier, in her welcome remarks, the Head of the PPP Unit at the Federal Ministry of Works, Mrs Ugwu-Chima Nnennaya, stated that the inauguration was part of the statutory responsibilities of the Federal Ministry of Works, which has the mandate to attract private sector funding for the development and management of the federal road network through the Highways Development and Management Initiative.
She said, “The HDMI is expected to, among other things, bring order, accountability, and profitable entrepreneurship to the operations, management, and maintenance of Federal Highways. This is consistent with the provisions of the ICRC Establishment Act 2005, the National Policy on Public-Private Partnership (N4P), the Federal Roads and Bridges Tolling Policy of August 2021, and the Federal Highways Act CAP. 135, 1971, which grants the Honourable Minister of Works the power to administer tolls on Federal Highways.”
In her acceptance speech on behalf of the committee on the implementation of the Cashless Tolling System, the Chair of the committee and Head of the PPP at the Federal Ministry of Finance, Jummai Katagum, thanked the Minister for the opportunity to serve the nation.
She said, “We thank you, Honourable Minister, for giving us this opportunity to serve our nation. As we all know, infrastructure is the root of development, and among the sectors of infrastructure, transportation is one of the most important.
“Without transportation, things would slow down, and we need to open up roads everywhere. As we all know, particularly in Nigeria, transportation is one of the main means of movement for people, goods, animals, and everything. So, it’s a sector that is very important in the development of a nation. I would like to thank the Ministry of Works for allowing us to serve, and we will do our very best to ensure that we contribute to the success of this project.”
The committee comprises members drawn from the Federal Ministries of Works, Finance, Budget and National Planning, and Justice, with the Head of the PPP at the Federal Ministry of Finance, Jummai Katagum, and the Head of the PPP Unit at the Federal Ministry of Works, Mrs Ugwu-Chima Nnennaya, serving as Chair and Secretary, respectively.
The committee has two weeks to submit its report.
