The Federal Government through the Ministry of Works on Monday insisted that the Lagos-Calabar Coastal Highway contract followed the procurement process.
The project, according to the Minister of Works, David Umahi, which is a 700-kilometre, 10-lane highway was conceived as an Engineering, Procurement and Construction plus Financing (EPC+F) project.
Umahi noted that the model of precurememt entails part-funding by the Federal Government.
This was in reaction to the allegation of conflict of interest raised by former Vice President and presidential camdiadte of the People’s Democratic Party (PDP), Atiku Abubakar.
Atiku had claimed that President Bola Ahmed Tinubu’s son, Seyi was on the board of a sister company executing the project.
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But the presidency said nothing stops Tinubu’s son from pursuing his legitimate business interests.
The road project, regarded as one of the biggest in Africa, was awarded to Hitech Construction Company Ltd and it will link nine states.
Umahi, in a note, said the approval process went through the Bureau of Public Procurement (BBP) after consideration by the Federal Executive Council (FEC) as prescribed by law.
He said: “This project is an unsolicited bid on EPC+F.
“Under this model, the investor provides all designs, part of the financing and construction while the Federal Government provides the counterpart funding.
“The ministry received such a bid, worked on it and sent it to BPP.
“The BPP worked on it according to the Procurement Act and came up with a price slightly lower than the ministry’s price and even lower than the cost of similar projects awarded five years ago like the Bodo-Bonny project.
“BPP issued a certificate of no objection on the project to the Ministry of Works in line with the Procurement Act.
“The Ministry of Works took the certificate of no objection to FEC and FEC debated and approved it. The project followed due process.”
Umahi also cleared the air on the Environment and Social Impact Assessment (ESIA) report, saying that preliminary approval was issued in December 2023 by the Ministry of Environment and renewed in January.
According to him, the ESIA certification is progressive.
“We have a certified ESIA to start the project.
“We have redesigned the route to put a human face to the decision and to minimise demolition of permanent infrastructure.