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By Ahmed Idris
Minister of Works, Engr. David Umahi, addressed concerns last week in Lagos regarding the cost and transparency of the 700-kilometre Lagos-Calabar coastal highway project. This came after allegations of lack of transparency in awarding and costing the project, connecting the South-west to the South-south of Nigeria, were raised by former President and PDP presidential candidate in the 2023 election, Atiku Abubakar.
Speaking at a press conference and stakeholders’ meeting, Umahi defended the award of the contract to Hitech Construction Company, bypassing a public tender system. He cited the company’s competence and track record, particularly its role in reclamation work on a Lagos beach, as reasons for its selection.
Umahi also addressed Atiku’s allegations of opaque dealings by the current administration. Atiku had questioned the project’s cost, estimating it to be significantly higher than previous estimates.
Umahi countered Atiku’s figures, stating, “But if 47.47km costs about N1.06 trillion, it means each kilometre is being built at N22.5 billion or $18 million. For a project that is going to be 700km, it means the total cost could be N15.7 trillion or $12.56 billion, which is higher than previous estimates.”
Umahi argued that the project’s cost was approximately N4.329 billion per kilometre, disputing Atiku’s calculations. He also emphasized the importance of infrastructure investment to tackle inflation, explaining, “So there’s no personal interest associated with that.”
Regarding the project’s starting point, Umahi clarified that the original plan was to commence from Calabar. He stated, “We didn’t call it Calabar-Lagos-Coastal Road. You called it Lagos-Calabar-Coastal Road, which means that there is a zero point.”
Highlighting the selection of Hitech Construction Company, Umahi pointed to a section of the procurement law that allows the government to choose contractors based on skills rather than cost. He cited the example of the 3rd mainland Bridge awarded to Julius Berger due to their expertise in that area.
Umahi concluded by emphasizing the benefits of awarding the project to Hitech, noting their success in stopping flooding and reclaiming land, likening their efforts to developments in Dubai.”
