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Legacy Road Projects: Oyo State Indigenes Support Seyi Makinde’s Infrastructure Renewal

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Legacy Road Projects: Oyo State Indigenes Support Seyi Makinde’s Infrastructure Renewal

Legacy Road Projects: Oyo State Indigenes Support Seyi Makinde’s Infrastructure Renewal
July 05
08:06 2021

…Governor assures of fresh vistas for Oyo State

There’s palpable and pervasive optimism across the length and breadth of Oyo State especially that Governor Seyi Makinde is committed to bettering the lots of the people and bequeathing to them and foreigners alike, a state that works for quality living and business. It is not surprising, therefore, that the people support heartily and wholeheartedly virtually every policy or programme of the governor.

A pointer to this was the recent re-award of the contract for the construction of 110kilometres Ibadan Circular Road for N138.2billion, which the government contends is a better bargain for the people than the 32km contract awarded by the immediate past government at the cost of N70bn. At the cost of N138.2 billion for the entire 110 kilometres stretch, the state government has saved about N100billion going by the past administration’s rate.

In a statement signed by his Chief Press Secretary, the governor stated, “Going by simple logic, the 110kms, broken down into three, would be, at least, 34kms each. Therefore, the past administration that awarded just 32kms for N70 billion would as well have awarded the entire 110kms for more than N210 billion, besides the inflationary trends of today.” The Circular Road, which encircles the Ibadan urban area, provides the critical link between different parts of the city and the new central business district initiated by Governor Makinde.

Worried about the slow pace of work, the state government affirmed that it revoked the contract because ENL Consortium, the initial contractor, failed to meet the timelines of the project. The contract for the first phase of the project was awarded in 2017 to be completed by March 2019. As of August 2020 when the government revoked the contract, the contractor had only attained 10% completion. No sane government, the people of Oyo contend, would sit back and tolerate such tardiness and unprofessionalism especially for a project that is of huge economic benefits to the people.

After a thorough selection process that involved many local and international firms, the state government granted the concession for the Circular Road to Sel-Vydra Ltd., a Special Purpose Vehicle, SPV.  The two companies form SEL-Vydra Ltd, is to execute the project on a Build, Operate and Transfer agreement.

Thus, contrary to widespread speculations and deliberate misinformation, what Sel-Vydra got is a concession, not a contract, meaning that it would generate 80% of the N138billion required for the project while the state government will invest the remaining 20%.

Further, Governor Makinde cleared the air, saying, “SEL-Vydra is a consortium of companies coming together for the concession. It is a Special Purpose Vehicle (SPV) that involves the coming together of different companies already registered with the Corporate Affairs Commission. So, the registration of the SPV should not be a source of any controversy.

“Concessions involve a process whereby the SPV is incorporated to warehouse the investment of the parties, and in this case, the entire investment of OYSG and SEL-Vydra. We didn’t have the Ibadan Electric Distribution Company (IBEDC) in existence long before the privatization of the power sector. It came to being for a transaction. That’s how concessions are done. Similarly, LCCI was not a company in existence long before the conceptualization of the Lekki Toll Road; it’s a child of the project.”

The state government further affirmed that due diligence was observed in the concession process to protect the interest of the people of Oyo State and ensure that the Circular Road becomes a reality after about 20 years of failed attempts by previous governments. Adding, “The government of Governor Makinde is an open and transparent one put in place by the people of Oyo State and it will only seek projects and implement policies that will serve the interest of the people and add value to the state. The Ibadan Circular Road, like many infrastructure development projects already embarked upon by this government, is in this bracket.” Governor Makinde also declared that his administration desires to deliver the project so that its great potential to contribute to the social and economic development of Oyo State is realised.

 

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