This was confirmed on Tuesday as the Lagos State Government announced the termination of its concession agreement with the Company.
In a letter written to the state house of assembly dated August 19, 2013, on supplementary budget proposal, Governor Fashola requested the House to amend the 2013 budget, owing to unforeseen developments in terms of the state’s internally generated revenue.
He said, “The proposal for
further amendment is largely predicated on the need to fund the
acquisition of the existing concession, right and toll revenue benefit
held by the Lekki Concession Company, the concessionaire for the
Eti-Osa-Lekki-Epe Expressway. This will effectively accelerate the
transfer of ownership of the road to the state, leaving the state with
wider policy options with regards to that important infrastructure.
“In order to address these issues, we
have proposed a two-prong approach namely: re-ordering some expenditure
provisions and also directing supplementation of the year 2013 budget.
This will entail an increase in the overall budget size by N7.5bn. This
is against the background of a projected shortfall of N22.5bn in
budgeted internally generated revenues, which now need to be covered by
the additional borrowings.”
However,.... The State Assembly gave its approval to the request on Tuesday in a proposal read on the floor of the house.
Lekki Concession Company and the state government had been in disagreement since 2011, when the firm introduced what the residents
considered as high tolls on the Admiralty Plaza after significant progress
was made in the first phase.
The decision of the state government to
terminate the concession agreement, was borne out of the
lawmakers’ approval of the supplementary budget, which gave it the right
to acquire the existing concession rights and toll revenue benefits
held by the concessionaire.
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