The Sustainability of Concessioning Itobe-Ajaokuta Expressway to the Private Sector

Apeh Ocholi Adejoh Samuel

doi:10.11648/j.ijem.20200402.13

Abstract

The study focused on the Sustainability of Concessioning of Itobe-Ajaokuta Expressway to the private sector. The methodology adopted was the traffic volume count for 30 days, which enabled me to calculate the number of vehicles for each of the six different classes of vehicle plying the road daily. The study found that a total of 78,690 vehicles use the road daily. The vehicles were categorised into six (6) different groups, and tolls to be paid allocated to each of them. From the research carried out, a total of One hundred and thirty four million, four hundred and eighty thousand, six hundred naira (#134, 480, 600), could be realised from toll charges annually. It was also found that the road is 5.05Km long and that it would cost the sum of Six hundred and eight million, four hundred and fifteen thousand, nine hundred and twenty naira (#608,415,920), to construct the road. The key objective was to analyse whether concessioning the expressway to the private sector is sustainable, that is whether the toll charges will be able to construct and maintain the road within the concession period of thirty years. The study recommends that Kogi State government could approach the African Development Bank for loan to construct this very critical road in order to alleviate the sufferings of the Nigerian people plying the road. The study concludes that the Ajaokuta-Itobe Expressway concession project is a viable and sustainable project, and that it will increase the welfare of the people, and directly or indirectly improve the standard of living of the people, and that rehabilitating the 5.05km of Itobe-Ajaokuta expressway will reduce environmental pollution, vehicle operating costs and travel time on the road thereby promoting economic development through improved transport services.

Highlights

The enormous resources required to fund highway infrastructure projects by the government as a result of budgetary constraints, necessitates the need for government at all tiers to seek for alternative means to fund road projects
The asset or service is entrusted to the private sector consortium and a part or all of the funding comes from the private sector
The study area falls within the extreme Eastern part of the South Western basement complex of Nigeria

Summary

Introduction

The enormous resources required to fund highway infrastructure projects by the government as a result of budgetary constraints, necessitates the need for government at all tiers to seek for alternative means to fund road projects. PPP is defined as a synergy between the public and private sectors in the financing and development of public infrastructures. PPP is a long term contract arrangement between a public authority and a consortium of private parties based on cooperation, with the aim of providing a mechanism for developing public service provision involving significant assets or services for a long period of time, say between 20 to 30 years. The road users who will be charged for using the road in form of tolls should be consulted in the planning and development process of such infrastructures. The study area is situated along Ajaokuta Interchange – Itobe Niger Bridge expressway, in Kogi state, North Central Nigeria. This particular road connects Northern Nigeria with the South Eastern Nigeria, South South, and even part of South western Nigeria. It is a huge frustration to Nigerians of all classes plying that road, a key link between Abuja, the Federal capital territory and Southern Nigeria

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Discussion

Conclusion