Senator Dave Umahi, the Federal Minister of Works, stated that the Highway Development and Management (HDMI) program will expedite the road infrastructure revolution across the country.
He made this claim in a closed-door meeting with Gov. Agbu Kefas of Taraba State, Aliko Dangote, and Tony Elumelu at the Ministry of Works on Wednesday, according to a statement on the ministry’s website.
HDMI, a public-private partnership, aims to alleviate the financial burden on the Federal Government by involving the private sector in the construction, operations, and maintenance of federal highways nationwide.
- “This private sector initiative (HDMI) will fastrack road infrastructure revolution and bring order, accountability, and profitable entrepreneurship to the operations, management, and maintenance of Federal Highways,” Umahi said.
Nairametrics previously reported that Umahi established three committees to oversee road construction projects carried out by concessionaires in collaboration with the Federal Ministry of Works.
The minister stressed the potential for private sector investments in the Federal Government’s management of over 35,000 km of the national road network to stimulate economic growth.
Umahi highlighted the federal highway network’s significance, as it handles over 70% of vehicular traffic, serving as a crucial infrastructure for the movement of goods and services nationwide.
- “This initiative will trigger economic development, job creation, local content development and wealth creation for the Nigerian population,” Umahi said.
What you should know
- The Federal Government established the Highway Development and Management Initiative (HDMI) in response to insufficient budgetary allocation for the 35,000 km federal highway network.
- HDMI seeks private sector involvement in the construction, operations, and maintenance of federal highways nationwide.
- Recall that about five months ago, Nairametrics reported that the Federal Government inaugurated a Contracts Management Team (CMT) to oversee the concession of selected federal roads under the Highways Development and Management Initiative (HDMI).
- Nairametrics earlier in January 2024 reported that the Works Minister, Dave Umahi, set up three committees to fast track the implementation of the HDMI project.
- Senator Umahi had earlier hinted that construction work on selected concessioned federal roads will kick off by the end of March 2024.
- Nairametrics also reported that the Federal Government will toll some of the roads that would be constructed under the HDMI programme to enable the emergent concessionaires to recoup their investments. There are also non-toll revenues for the investors as well.
