The Lagos state government
acquired ownership of the Lekki Concession Company (LCC) and the Lekki-Epe
expressway toll gate in December 2014.
The LCC had in February hiked the
toll payable by vehicles plying the route, a move antagonistic to one of Lagos’
stated reasons for the acquisition.
In August 2013, the
administration of ex-governor Babatunde Fashola had requested a supplementation
of the fiscal budget to grant total control of the expressway to the state.
This, the government said, would
prevent a wanton increase of the toll by the concessionaire, and leave the
state with wider policy options.
The state house of assembly
subsequently approved N7.5bn to accelerate the acquisition process.
In March 2018, the Human and
Environmental Development Agenda (HEDA) requested Akinwumi Ambode, Lagos
governor, to give an update on the state’s acquisition of parts of the
Lekki-Epe expressway.
Olanrewaju Suraju, chairman, HEDA
resource centre, said Lagosians deserve to know why there has been a delay in
the acquisition and also the contract terms and agreement entered into by the
state government and the LCC.
According to Suraju, the
taxpayers of the state deserve more than “passing toll increment and
public-private-partnership shrouded in secrecy, opacity and conjectures”.
Responding to HEDA’s Freedom of
Information (FOI) request for an update, the state ministry of transportation
said it acquired the road and the LCC in December 2014.
TO Salaam, permanent secretary of
the ministry, in the letter dated May 8, 2018, and seen by TheCable, said the
state acquired the LCC and toll gate through a share and purchase agreement.
“The Lekki-Epe Concession (the
project) was initiated by the ministry of transportation under the infrastructure
development programme by the former administration.,” the letter read.
“Please, be informed that the
Lagos state government via a share and purchase agreement acquired Lekki
Concession Company limited in December 2014. The Lekki Concession Company
Limited was set up as a special purpose vehicle to execute the
Eti-Osa/Lekki-Epe expressway toll road concession.
“The project which was initially
designed as a public private partnership project was based on assumptions and
economic indicators that are no longer consistent with market realities. In the
circumstance and upon consultation with the erstwhile shareholders and all
major shareholders including the state house of assembly, the project was
restricted, hence the acquisition of same by the government.
“Further information can be
obtained from the Lekki Concession Company if required.”
When the toll review took effect in February, the LCC said
the “increase is as a result of current economic and business realities that
have adversely increased the cost of operations and maintenance of the
company’s loan obligations”.
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