Will Ambode’s 4th mainland bridge bring joy?

Lagos State does not have the money to build the 4th Mainland Bridge, which would link the Ajah axis to the main land, but it is determined to build it. Thus, the State is contemplating the Public-Private Partnership (PPP) model for the bridge. Make no mistake about it, the proposed bridge will change lives in Lagos.  The proposed project would influence property values in the Ajah-Ikorodu-Isawo-Ojodu axis and service the Lekki-Free Trade Zone – the location of the proposed Dangote Refinery.  The pain suffered by commuters, who travel from Ajah to the main land, would be reduced. However, the question is, do we start rejoicing about this news. The answer to this question is not clear yet.

Though Governor Ambode needs to be commended for making frantic moves to get this bridge constructed, it is important for the public to be acquainted with issues concerning this project. Such informed conversations, and maybe criticisms, would help in the final execution of the project, in order for the project to be a success. The proposed bridge and adjoining roads are very important and strategic projects.

Before we go into the conversation, let me give an overview of the recent history of the project. Sometime last year, it was reported that the State had altered the alignment of the proposed bridge due to encroachment on its right of way. Apparently, the State didn’t want to get into messy and expensive legal battles on compensation. One wonders if the owners of the properties on the right of way of the proposed bridge had approvals to build on this route, in the first place. If they had, it tells a lot about building regulation and approval in Lagos.

Now, suppose unforeseen land compensation issues drag the project into 2019, and the unexpected happens – APC fails to capture Lagos State in 2019. What do you think would happen to this strategic project? Remember the APC government in Ogun State cancelled all concession agreements, or rather public-private agreements, entered into by the previous PDP government.

You don’t need to be a political scientist to know why governments treat themselves with suspicion. Remember the Lekki-Epe Concession. After the Lekki-Epe express road was built, it dawned on the public, at least that’s what it seemed, that the road was a goldmine. There were serious issues about the ownership of the company which was operating the road. And of course the public was asking if the operators and financiers of the road made the level of investment they claimed, in order to justify the huge profit they were to make. These issues could make PPP projects like the 4th Mainland Bridge messy.

The first point I would like you to take away in this conversation is that Lagos State government should make sure the PPP process for this project is as transparent as possible, else people might start speculating that Tinubu owns the company which would be collecting tolls (depending on how the investors which to recoup their money). Or even that he owns the company that built the bridge and its adjoining roads. Some might even say it belongs to Fashola, Tinubu and Ambode – these kind of rumours would not be good for a project of this nature and for PPP projects in Nigeria.

Records of PPP projects, in Nigeria, would no doubt increase the cost of this project – this increased cost might be transferred to end users, who might be tolled. What do I mean by this? Remember how the Lekki- Epe concession was terminated? What about FAAN and Maevis Nigeria’s PPP contract? With this kind of antecedents, investors would obviously see PPP projects in Nigeria as a high risk project. Risks affect the cost of capital. The higher the risk I am taking, the more rewards I expect as an investor. And this is a problem. If the tolls are high for the proposed bridge and adjoining roads, citizens might complain, or even protest.

Risks envisioned by the potential financiers would require some ingenuity and tact, in order to address them. Also, the success of this significant project would determine the future of other PPP projects in Nigeria. I remember some time ago, Governor Ambode blamed former President Jonathan for the delay of the project. He claimed Jonathan didn’t want to give Lagos the go ahead. Well, now, I believe Lagos will easily get the go ahead from Buhari. I also believe Buhari would be interested in seeing the highest level of transparency and openness in the contract.

I believe Lagos State must be amending its Infrastructure Regulatory Commission Act in order to give investors more confidence.

On a final note, I strongly believe that a serious debate should be taking place on this project in order for it be successful. This is a very strategic project in Lagos State. I even understand that Dangote showed interest in this project some time ago. The project would also link his new refinery to the rest of the city, as it were.

OTHER BURNING ISSUES

THE WAY OUR SENATE THINKS

If truth be told, some very educated Nigerian men secretly support what the senate did when it throw away the gender equality right bill.

Well, this attitude towards women might have been influenced by some local culture and some bitter experience some men claim they have had with women.

But, for Senator Abaribe to tell us, as he did last week in an event, that his colleagues felt the gender bill would turn women into prostitutes and lesbians, is very disturbing.

How can our senators think like this?

BUHARI, PLEASE RESPOND TO THE AMERICANS

Remember that one of the reasons the US turned its back on Jonathan was because the military, under the former president, was accused of various human right violations.

Now the Americans have accused our military and police of various human right violations. They demand an explanation for over 300 bodies killed and buried in Kaduna.

Hope this doesn’t make them turn their back on us again.

Please, government should provide a convincing response to them.

TAX OVERDOSE

The senate is proposing a new tax targeted at phone users and operators.

Of course this bill would cause an increase in the tariff paid by phone users. It is not clear if this tax will replace VAT charges already being charged on mobile communication. Actually, it might not.

The bill was sponsored by Senator Ali Ndume and has gone through first reading.

One wonders if an overdose of inflation and tax would not lead us into coma this year.

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