By HEADLINENEWS.NEWS correspondent
The House of Representatives has resolved to launch a comprehensive investigation into the controversial Lagos-Calabar Coastal highway project.
The lower chamber, on Thursday, following the adoption of a motion of urgent public importance moved by Austin Achado (APC, Benue), resolved that its Committees on Works and Public Procurement should probe the project to ascertain if procedures were followed in the award of the contract.
Background
The 700 km coastal highway, projected to cost N15 trillion, will transverse eight states, starting from Lagos and terminating in Calabar, the Cross River State capital.
Although many have lauded the ambitious project, others faulted the process of the award of the contract that led to the emergence of Hitech Construction Company Nigeria Limited as the preferred contractor.
Among those who faulted the process was a former vice president, Atiku Abubakar.
Also, HEADLINENEWS.NEWS , in a recent editorial, raised some concerns about the project. It said, among other things, that the government seemed to have a misplaced priority by embarking on the project amid a strained fiscal environment.
Aside from the cost, the demolition of structures along the right of way of the project, particularly the hospitality outlets around the Lagos beaches, has sparked public discourse on the project.
The government has paid compensation to some of the businesses affected by the demolition.
The motion
Moving the motion, Mr Achado highlighted the potential gains of the road project but raised some concerns.
He focused on the procurement process of the project, stating that it possibly violated the Public Procurement Act of 2007 and the Infrastructure Concession and Regulatory Commission Act.
“The Procurement Strategy may have violated the Public Procurement Act 2007, section 40(2) which requires that where a procuring authority adopts to use restrictive tendering approach, it should be on the basis that the said goods and services are available only from a limited number of suppliers and contractors and as such, tenders shall be invited from all such Contractors who can provide such goods and services,” the lawmaker said.
Mr Achado also raised concerns about the Engineering, Procurement, Construction plus Finance (EPC+F) funding model adopted by the government for the project.
He said the funding model has not been approved by the National Assembly.
“The contingent liabilities accruing to the Federal Government of Nigeria on this project violate the Debt Management Office (Establishment) Act of 2023,” he noted while explaining the implication of the EPC+F.
He added that “section 22(3) of the Debt Management Office (Establishment) Act of 2023 states that the Minister shall not guarantee an external loan unless the terms and conditions of the loan shall have been laid before the National Assembly and approved by its resolution.”
The lawmaker urged the House to set up a special committee to investigate the project.
However, Uyime Idem (PDP, Akwa-Ibom) moved an amendment for the project to be referred to the Committee on Public Procurement, which he heads.
He explained that his committee already received several petitions on the project. His amendment was subsequently adopted by the House.
Meanwhile, Isiaka Ibrahim (APC, Ogun) moved an amendment for the House Committee on Works to be included. The amendment was also adopted.
The committees were then directed to summon the Minister of Works, Dave Umahi, the Minister of Finance, Wale Edun and the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, to ensure that all guarantees and credit enhancement instruments for the Lagos-Calabar Coastal Road Project are sent to the National Assembly for approval.
When the motion was put to a vote by Speaker Abbas Tajudeen, after the motion was amended, the majority of the members voted in support.
