After several months of muddling through the challenges with the management of the Lekki-Epe Expressway 30-year Build, Operate and Transfer agreement with the Lekki Concession Company (LCC)., the Lagos State Government has announced the termination of its concession agreement.
The government justified the cancelation of the agreement with the revision of budget which increased from N499.6bn to N507.105bn.
The state House of Assembly had already approved a supplementary budget of N7.5bn to enable the government to fund the acquisition of the existing concession right of the expressway.
The state government had terminated the concession agreement after the supplementary budget was approved by the lawmakers’ which mandated the government to acquire the existing concession rights and toll revenue benefits previously held by the concession company.
According to Governor Babatunde Fashola’s supplementary budget proposal letter to the state House of Assembly which was dated August 19, 2013, the government requested for budget amendment due to unforeseen developments internally generated revenue issues.
Fashola had said, “The proposal for further amendment is largely predicated on the need to fund the acquisition of the existing concession, right and toll revenue benefit held by the Lekki
“In order to address these issues, we have proposed a two-prong approach namely: re-ordering some expenditure provisions and also directing supplementation of the year 2013 budget. This will entail an increase in the overall budget size by N7.5bn. This is against the background of a projected shortfall of N22.5bn in budgeted internally generated revenues, which now need to be covered by the additional borrowings.
Initially, LCC and the state government faced public criticism after the introduction of tolls which were considered high by the motorists yet it is pertinent to note that tolls are still currently being collected at the first toll point called the Admiralty Plaza.
The commissioners for Budget and Economic Planning, Mr. Ben Akabueze; Finance, Mr. Ayo Gbeleyi; and Works and Infrastructure, Mr. Obafemi Hamzat, were at the House to defend the proposal before the Assembly finally gave its approval to the request on Tuesday in a proposal presented by the Clerk, Mr. Ganiyu Abiru.
Earlier on, a human rights lawyer, Mr. Ebun Olu-Adegboruwa, sued in his personal capacity to stop the LCC and the state government from enforcing the toll collection until the 10km alternative route was constructed for those that might not use the road.
However, the Special Adviser on Media to the Governor, Mr. Hakeem Bello, said he had yet to get the details on the issue.
The LCC was mandated under a 30-year Build, Operate and Transfer agreement to upgrade, expand and maintain the about 50-kilometre road (Phase I), and construct another 20km of coastal road (Phase II) alongside.
The Conservation Plaza was built about 10km away from the first tolling point between the Chevron Drive and Oluwanisola Estate, but the collection of tolls has not started.
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