The Federal Government has justified its decision to award the Lagos-Calabar Coastal Highway project to Hitech Construction Company Ltd., citing the company’s expertise in concrete paving and its successful bid for additional sections of the project.
Minister of Works, Sen. Dave Umahi, made this clarification during an inspection tour of the highway project in Lagos, as reported by the News Agency of Nigeria on Saturday.
Umahi explained that Hitech was selected through a restrictive bidding process for Section 1 due to its proficiency in concrete paving, a construction method preferred by the government, particularly in areas with a high water table. He highlighted Hitech’s past work on the Oworonshoki-Apapa Road as evidence of its capability in concrete road construction.
Addressing concerns over the procurement process, Umahi outlined that Nigerian law permits three types of bidding: restrictive procurement, selective/competitive bidding, and open bidding. He noted that the Federal Government initially required companies to possess at least five concrete pavers, which significantly narrowed the pool of eligible contractors.
“When we started this project, we asked for companies that have up to five concrete pavers. You will agree with me that until we started this, the concrete paver was not as common in Nigeria as it is today. We had to look for a company that had done this kind of project before, and that is Hitech,” Umahi stated.
He further explained that after restrictive bidding was used for Section 1, the government opted for selective bidding for Sections 2, 3A, and 3B, allowing multiple companies to compete, with Hitech emerging as the winner.
Umahi asserted that due process was followed and that there was no violation of procurement laws. He dismissed allegations that President Bola Tinubu influenced the selection process, emphasizing the transparency of the contract award.
The Lagos-Calabar Coastal Highway, spanning over 700 kilometers, is a strategic infrastructure project aimed at enhancing transportation and boosting economic growth along Nigeria’s southern corridor.
The Federal Government awarded the contract to Hitech Construction Company Ltd. under an Engineering, Procurement, Construction, and Financing (EPC+F) model. This structure places the financial and construction risks primarily on the contractor, while the government provides counterpart funding.
Providing an update on Section 1 in Lagos, Umahi stated that construction on the 47.47-km stretch, which commenced in March 2024, is progressing well, with 30 km expected to be commissioned by May 2025.
The contract award has sparked criticism from political figures, including former Vice President Atiku Abubakar and former Lagos ADC gubernatorial candidate Funso Doherty, who questioned the transparency of the process.
In August 2024, Doherty filed a lawsuit against the Federal Government, the Bureau of Public Procurement, and Hitech, arguing that the contract violated the Public Procurement Act and the Environmental Impact Assessment Act. He claimed that the project was not subjected to open competitive bidding and that construction commenced without a proper EIA.
Doherty’s legal action seeks to nullify the contract, halt further construction, and enforce open bidding for the remaining sections. The case remains unresolved.
