The Lagos State Deputy Governor and All Progressives Congress governorship candidate, Obafemi Hamzat, has reaffirmed the state government’s commitment to constructing the Fourth Mainland Bridge, saying the project will be delivered through a public-private partnership.
Hamzat, who spoke during an interview on Lagos Television on Tuesday, said the state could not finance the bridge alongside major rail projects using its own funds, adding that discussions were ongoing with prospective investors.
He said the project had been designed and its cost assessed, while private-sector professionals had been engaged to support negotiations and other aspects of its development.
“The Fourth Mainland Bridge is a fantastic project that we must build, but we cannot fund it on our balance sheet and fund rail at the same time.
They are both monster projects, so we’ve been talking to investors,” Hamzat said.He disclosed that the state had received interest from investors in Portugal, China and other places, expressing confidence that partnerships would provide a financing model for the project.
We will build it with partnerships, but it’s also important that we know that it will be expensive and we cannot—we don’t want to borrow to build it because it might be a challenge for us. So that’s why we believe it must be a partnership; it must be a PPP,” he said.
Hamzat explained that the government was avoiding excessive borrowing to finance the bridge because of the potential pressure it could place on the state’s finances.
He also identified the payment of tolls as a key issue in attracting private investors, saying investors needed assurance that they would recover their investments through revenue generated by the infrastructureWhen we pay tolls on our road, and we stop it, investors are not going to come. How do they get their money? Return on investments. How will they get it?” he asked.
According to Hamzat, some prospective investors had expressed concerns about the reluctance of road users to pay tolls, particularly where toll collection had been discontinued.
He said the government was presenting traffic data and other relevant information to investors to demonstrate the project’s viability and the demand for improved infrastructure in Lagos.
Hamzat added that the government needed to address investors’ concerns and convince them that investing in major infrastructure projects in the state would be worthwhile.
The Fourth Mainland Bridge is a proposed major road project intended to improve connectivity across Lagos and provide an alternative route to ease pressure on existing roads.
