AfDB to fund Nigeria's Lekki toll road

The African Development Bank (AfDB) has approved a loan of US$ 85 million to help finance the upgrade/rehabilitation of the Lekki to Epe expressway, which links Victoria Island with the Lekki peninsula in Lagos, Nigeria's economic capital.

The project will consist of upgrading, widening and then tolling the existing 49.5 km long Lekki-Epe Expressway, with the aim of reducing traffic congestion and improving road safety along the Lekki corridor.

The contract will be based on the Public-Private Partnership (PPP) model, under the Design, Build, Operate (DBOT), and Transfer and Rehabilitate, Operate (ROT) framework/business model.

In a statement on its website the AfDB said the project is a "landmark PPP" and is in line with the master plan for Lagos State and the national development strategy of the Federal Republic of Nigeria, the emphasis of which is on "strengthening the transportation infrastructure in order to meet the needs of its growing population by encouraging private sector-led investments in the transport sector."

Besides upgrading/rehabilitating the existing 49.5 km long expressway, the first phase will involve the construction of a new ramp to carry traffic onto the Falomo bridge, construction of new interchanges, footbridges, walkways and bus stops along the expressway, construction of 6 km of the new 20 km long coastal road, which will serve as an alternative road up to Toll Plaza 1, and construction of 10 interconnecting link roads between the Expressway and the coastal road.

The concessionaire will also construct three toll plazas along the Expressway and will be responsible for the operation and maintenance of the toll road during the concession period.

Phase two will see construction of the remaining 14 km of the coastal road, and is dependent on the Lagos State Government's completion of civil works on the new coastal defences that require additional financial resources.

The project is expected to create 635 short-term and 1146 long-term jobs with a good proportion of the employees being women.

The total project cost is about NGN 44.91 billion (US$ 382 million), the AfDB loan representing 35% of the total amount to be borrowed.