Wednesday, 28 August 2013

Lagos Gov. cancels Lekki-Epe Expressway concession.


Controversy surrounding the management of the Lekki-Epe Expressway took a new turn on Tuesday as the Lagos State Government announced the termination of its concession agreement with the Lekki Concession Company.

Already, the state House of Assembly has approved a supplementary budget of N7.5bn to enable the government to fund the acquisition of the existing concession right of the expressway.

The LCC was mandated under a 30-year Build, Operate and Transfer agreement to upgrade, expand and maintain the about 50-kilometre road (Phase I), and construct another 20km of coastal road (Phase II) along the Lekki corridor.

But the firm and the state government came under severe attacks when they introduced what the residents considered as high tolls on the road in 2011 after significant progress was made in the first phase.

The decision of the state government to terminate the concession agreement, it was learnt, followed the lawmakers’ approval of the supplementary budget, which gave it the right to acquire the existing concession rights and toll revenue benefits held by the concessionaire.

What happens next? I guess that's the big question on everyone's mind. Does the charges go down, up or remain the same? In Nigeria, well we know the answer to that.


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