Concessionaire of the Benin-Asaba highway has cautioned the Federal Govt against the revocation of the road contract.

It warned that the penalty for its termination could be heavy.

A statement yesterday by the concessionaire, Abiodun Olatunji (SAN), said the government was doing palliatives on the road in the public interest.

He said the government should limit itself to the provisions of the concession.

The statement quoted the lawyer as saying: “The legal opinion also contends that reliance on broad public-interest considerations, without more, may not amount to a contractual basis for terminating the concession. While public interest may justify certain government actions aimed at protecting lives and property, it does not automatically extinguish contractual rights relating to compensation, cure periods, or lender protections provided under the agreement.”

Olatunji noted that a permanent takeover of the project, the removal of the concessionaire, redesign of the entire route, or the appointment of replacement contractors may extend beyond the scope of a limited emergency intervention unless undertaken through mechanisms provided for in the agreement.

The Federal Executive Council (FEC) approved the project on January 16, 2023, while the concession agreement was signed on May 23, 2023.

The project was structured as a Design, Finance, Build, Operate and Transfer (DFBOT) arrangement with a concession period of 25 years, including the construction phase. A 2026 transport-sector study prepared for the Japan International Cooperation Agency (JICA) also records the Benin-Asaba concession as running from May 2023 to May 2048 and identifies it as being under implementation.

Also, the Federal Government has begun emergency intervention work on the 125-kilometre Benin-Asaba highway.

The government said the palliative work would take four weeks to complete.

The Benin-Asaba highway was concessioned to the Benin-Asaba Expressway Concession Company (BAECC) under a Public-Private Partnership (PPP) arrangement. Under the arrangement, the first 65 kilometres are to be completed in May 2027.

But the concessionaire failed to meet up to expectation thereby worsening condition of the road.

Speaking in Benin, the Edo State capital, at the kick-off of “Operation Rescue Benin-Asaba Highway,” President Bola Ahmed Tinubu, who was represented by Edo State Governor Monday Okpebholo, said the emergency intervention would last for four weeks.

The President explained that the intervention aimed to reduce hardship that road users faced.

“We are here today not to witness the commencement of another road project. We are witnessing the response of a government that has heard the cries of its people and has chosen to act. That is why today’s intervention is truly a rescue operation.

“To the new contractor, this is a road of great economic importance to Edo, Delta and Nigeria.

“We expect quality work, strict compliance with the approved project specifications, and delivery within the agreed timeframe, there must be no excuses,” he said.

President Tinubu urged the people to remain patient, saying their complaints had been heard.

He said the contract was not awarded to Hi-Tech or any other contractor, explaining that efforts to secure the cooperation of the concessionaire failed.

State Governor Sheriff Oborevwori, who was represented by his Information Commissioner Charles Aniagwu, said the Benin-Asaba corridor had remained a major challenge for residents of Delta and Edo states.

Oborevwori hailed President Tinubu for helping to restore the road, which he described as an important link for commerce and cultural ties between both states.

“For us in Delta, this intervention is a welcome development because this road helps to connect commerce, culture, and bring us together as a people who once existed as one state.

“This road needs to come back alive because we have all felt the embarrassment of the deplorable condition of the road.

“The decision to bring back life to this road is a decision we must appreciate President Tinubu for; and indeed, it shows that he listens,” he said.

Also, the management of the Edo Refinery and Petrochemical Limited has carried out further repair works on failed sections of the Benin-Sapele road to prevent trucks and heavy duty vehicles from falling on the road.

The palliative work was done at various sections of the road, such as Iyanomo, Ekosa, Obayantor Ologbo, and Koko junction in Delta State.

The Head of Technical Operations of the Edo Refinery, Segun Okeini, said the intervention was meant to prevent a repeat of an incident that happened five years ago when an oil tanker conveying petrol fell at one of the bad spots in Ologbo, resulting in a fire that killed over 20 persons.

Okeini moved to repair the spot after the accident.

The refinery chief said the failed portions had been affecting the firm’s operations as tankers spent days on the highway before gaining access into the refinery to load products.

“Our refinery is just about two kilometres ahead. This area happens to be part of the area of coverage of our corporate social responsibility (CSR).

“They approached us to help them fix the failed section because most of their people cannot go out of the area. Our chairman was around during that period, and he saw the level of damage to the road. Even on that same day, we had like five trucks that fell on the road. He authorised that we should just undertake this.

“It is not directly affecting our production. But you know trucks that come for loading. At times, when the road is blocked they will not be able to access the facility and that can affect our operation,” he said.

Managing Director of SODEOSA Global Resources, Solomon Uyiekpen, said commuters experienced suffering on the road before the intervention.

Uyiekpen said he collaborated with the Edo Refinery to fix the road as a form of CSR to the communities around the area.

A member of the Obayantor community, Kennedy Nwazekwu, noted that the repair work would stop incessant accidents on the road.

He said over 20 persons had died when their vehicles fell into the ditch in the area. (The Nation)