25-year concession limits FG’s direct action on Benin-Onitsha Road, Says Umahi
Minister of Works, David Umahi, explains that a 25-year concession agreement limits the Federal Government’s direct action on the Benin-Onitsha Road. Read More: https://punchng.com/25-year-concession-limits-fgs-direct-action-on-benin-onitsha-road-says-umahi/
The Minister of Works, David Umahi, has defended the Federal Government's approach to the Benin-Onitsha road, explaining that a 25-year concession limits the government's ability to take direct action on the project. Umahi stated that the 125-kilometre corridor is under a concession that restricts the government's capacity to terminate the agreement and award the project to another contractor.
He emphasized that the government is engaging the concessionaire to expedite the work on the road while adhering to contractual and legal obligations. Umahi clarified a statement released by the Director of Information and Public Relations in the ministry, responding to criticisms describing the Benin-Onitsha corridor as a "monument to neglect."
He emphasized that the condition of the road predates the current administration, which inherited thousands of kilometers of deteriorating federal roads and numerous stalled or underfunded projects. Despite the challenges, Umahi argued that the government cannot arbitrarily terminate the existing concession agreement without considering the legal and financial consequences.
He highlighted that the Benin-Asaba Expressway is included in the Federal Government's Highway Development and Management Initiative as a Value-Added Concession, making the situation more complex than simply ending an ordinary construction contract.
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