The House had last week invited the State Attorney-General and Commissioner for Justice, Ade Ipaye, his counterpart in the Ministry of Works and Infrastructure, Femi Hamzat, and the Special Adviser to Governor Babatunde Fashola on Public Private Partnership, Ayo Gbeleyi, for clarification on why the State Government would announce tolling on the bridge that was built with public funds.
At plenary, the three invited members could not convince the members on several questions asked by the lawmakers concerning the tolling of the bridge, how the government came about the amount and the reason why the government selected the Lagos Tolling Company, LTC, without due process.
While some members demanded for the identity of the tolling company, one of the lawmakers, Hakeem Masha wondered why the State Government could go ahead to secure the services of a tolling company when the project was not a public private partnership deal.
The Deputy Speaker also countered the State cabinet members who had informed the members that the tolling company is 100 percent indigenous. Slamming the government for seeking foreign companies, he reminded his colleagues that a South African company owned stakes in the company.
Kolawole further asked the trio to
furnish the House with the length of the bridge and asked for the
relationship between the bridge and the Lekki-Epe Expressway manned
by the Lekki Concession Company that collects tolls on the road.
The Leader of the House, Dr. Ajibayo Adeyeye, said he was not
comfortable with the clause that the tolling company would further
share from the excess profit made from the tolling after getting 27
percent of the net toll revenue and another 20 percent of revenue
from activities around the bridge like advertisements and use of
right of way.Defending government action, Ade Ipaye said it was a fair deal with the tolling company.
According to him, the government considered the amount the tolling company was investing in the tolling equipment and their maintenance.
The Attorney-General however agreed
that the contract agreement with the LTC had not been signed, but
that the tolling had started “in principle.”
In this case, he said, if at any time the traffic on the bridge is
not enough to maintain the tolling infrastructure, the government
would intervene. He said this does not amount to a financial
guarantee, but that it is close to indemnity as stipulated by the
law.On his part, Ayo Gbeleyi said the Lagos Tolling Company was set up for the purpose of receiving tolls on the bridge but added that the company is affiliated to a foreign company and it was picked because the government wanted something befitting of the status of the State.
He put the traffic forecast on the bridge at 17, 000 adding that the tolling company would be responsible for security and power on the bridge which length Mr. Hamzat put at 27, 200 square meters.
Explaining that the design life of the bridge is 50 years, he also said the toll amount is high to enable the government meet its agreement to compensate the Lekki Concession Company, LCC, for any infrastructure built 10-kilometer radius from the Lekki-Epe Expressway as contained in the non-compete clause of the contract between the government and the LCC.
Members of the House kicked against this with the Speaker, Adeyemi Ikuforiji, asking the executive to review that agreement. He wondered why the LCC qualified for the compensation when it has not completed its own contract.
The lawmakers also expressed disappointment with the executive after Mr. Gbeleyi informed them that the executive undertook a select tender in which it allowed only three companies to bid after which the LTC won.
Ipaye also said 10 years has been given the LTC to enable it recoup its investment and make profit.
As the debate became intense, the Speaker asked that the commissioners be asked to go while deliberations would continue at the executive session.
Is this argument for show or for real. Are they asking the governor for something? The intention is good but is it for real?
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