There is hope that the nightmare being suffered by motorists and commuters on the Enugu - Onitsha expressway, may soon be over.
This followed the approval by the Federal Executive Council (FEC) for the South African telecommunications giants, MTN to takeover the construction of the federal highway.
The deal which is put at over N202.8billion is under the Road Infrastructure Tax Credit Scheme.
The Minister of Works and Housing, Babatunde Fashola, disclosed this to State House correspondents at Presidential Villa, Abuja shortly after the weekly Council meeting chaired by President Mohammadu Buhari.
Fashola said the approval followed the Executive Order 7 signed by President Buhari in January 2019 which will enable the telecom giant to take over and complete the dualisation of the 110-kilometer road.
"Ministry of Works and Housing presented two memoranda and they are largely PPP-based memoranda and I will explain how"
"In 2019 January 25 specifically, you might recall that President Buhari approved Executive Order 7, which was the Road Infrastructure Tax Credit Scheme, to allow the private sector to invest tax liabilities in advance in infrastructure, and that policy has helped us to finance roads like the Obajana to Kana, Apapa-Oshodi, Oshoki-Ojota Expressway, the Bodo-Bonni expressway in Port Harcourt, about 1000 kilometres covering 21 roads under the NNPC investment. So, there is increase optic for that policy. So, today we have more"
“... the first that was approved today was the one by MTN Nigeria PLC, the telecommunication company to take over and complete the ongoing Enugu-Onitsha Expressway. That road is 110 kilometres, which is being dualised. So, you have 110 kilometres times two.
“The outstanding works aggregate to about 91 point something kilometres on both sides, if you accumulate it for those who use the road.
“You will see that the Enugu bound section has been largely completed but there’s a lot of work to be done on the Onitsha section.
“So, this policy is going to allow a steady and sustained stream of funding to completion by MTN and the amount approved is N202,887,436,672,11 billion to complete the outstanding works of an aggregate of 91.9 kilometres on both sides.
The GZ Industries equally received Council's approval to undertake the construction of the Umuchi-Ususu-Umueme Road in Abia State at the cost of N4.2billion, under the same scheme.
“The second memo also was under the Tax Credit Scheme and while the first one was related to the road linking Anambra and Enugu states, this one is with respect to a road in Abia State".
“..., the road is called Umuchi -Ususu-Umueme Road in Abia. The private sector beneficiary of the approval is a company called GZ Industries. GZ Industries manufactures aluminium cans for bottling drinks. They have a factory in Agbara in Ogun State and they have another one in Abia in this area. So, it’s a link road to their factory.
“The approval was for N4,205,454,855,26 billion. The road is a 3.7-kilometre road. So, it’s an access road to their Industry”, the Minister stated.
