FG Revises HDMI Road PPP Guidelines to Strengthen Concessions, Enhance Safety and Boost Private Investment
FG Revises HDMI Road PPP Guidelines to Strengthen Concessions, Enhance Safety and Boost Private Investment
The Federal Ministry of Works has announced a revision of the guidelines governing public–private partnerships for road projects under its Highway Development and Management Initiative (HDMI). The aim is to strengthen concession agreements, boost transparency and make investments in Nigeria’s road network more attractive to private firms.
Minister of Works Engineer David Umahi unveiled the updated rules at the conclusion of a two-day stakeholders’ meeting in Abuja. He explained that the revisions will require concessionaires to install safety and comfort-enhancing features—such as CCTV surveillance, solar-powered streetlights and designated rest areas—along their routes.
According to a statement from the minister’s media adviser, Orji Uchenna Orji, portions of the agreements signed in May 2023 have been revisited to ensure better value for money, clearer long-term collaboration and fewer legal disputes related to the Put-Call Option Agreement. Key discussion points included performance bond requirements, toll-setting procedures, expanded scope for ancillary facilities, and protocols for projects where work had already begun under previous contracts.
Under the new framework, private partners must, before taking full control of any site, settle existing contract obligations, provide evidence of financing and equipment, clear outstanding debts to on-site contractors and demonstrate both technical expertise and financial capacity. No contractor currently working on a project will be displaced until these conditions are fully met.
Present at the meeting were Minister of State for Works Bello Muhammad Goronyo, representatives from the Ministries of Finance and Justice, other federal agencies, and executives from several concessionaires, including Africa Plus/BAAECC, Africa Finance Corporation, Mota-Engil, Balosh Integrated Services, LIB Concession and Greg Jane International.
