The Highway Development and Management Initiative was conceptualized and developed by the FMW&H in collaboration with the Infrastructure Concession Regulatory Commission (ICRC).
HDMI seeks to facilitate the development of parts of Nigeria's 35,000km of federal highway network by bringing order, efficiency, accountability, and profitable entrepreneurship to the operation, management, and maintenance of all assets within the Right of Way.
The initiative is expected to be anchored on private sector engagement for the management and development of the right-of-way.
The main objective of the initiative is to attract expertise and sustainable investment/funding in the development of road infrastructure and to maximize the use of assets along the Right of Way and develop other highway furniture.
There are two categories under the HDMI. The two categories are:
● The Value-Added Concession initiative, VAC: Under this category, the road pavement and entire right of way is concessioned for development and management by a concessionaire
12 federal highways have been selected for the 1st phase. These 12 highways combined represent about 1,963 km and 5.6% of Nigeria’s 35,000km Federal Highway Network
● The Unbundled Assets Approvals initiative, UAA: Under this category, approvals/permits are issued for individual assets on the right of way on a Build, Operate and maintain basis.
Both approaches aim to provide adequate highway services through the development of revenue-generating assets along the Highway. This is key to maintaining the functionality of the highway.
The objective is to develop an eco-system along the federal highway network by bringing multi-dimensional resources of skills, manpower, finance, technology, and efficiency into the National Highway governance.
Ultimately, this home-grown initiative will be the lasting solution to the development and management of federal highways by introducing order, accountability and profitable entrepreneurship to the operation, management, and maintenance of Nigeria’s 35,000 km federal highways.
The initiative is expected to have positive environmental and social impact which include:
• Improved road furniture and services.
• Reduction of vehicle operating costs arising from improved road condition and maintenance.
• Reduced travel time and costs.
• Safer travel experience through the provision of rest areas to reduce Fatigue that causes accidents.
• Reduction in vehicular pollution.
• Enhanced safety levels for users through better road signage, better information to users, and provision of non-motorized traffic facilities.
• Generation of direct and indirect employment in the region.
• The Vendors Market Place, VMP, is a feature under the VAC. It is a Portal to link prospective concessionaires with verified and registered local businesses that would offer various services within the concession. This is to help promote local content and particularly small businesses in the Initiative. The portal has been launched along with the HDMI E-portal and qualified vendors are able to register.
The table below outlines some of the revenue-generating assets and highway services.
|Revenue generating Assets||Highway services|
|Advertising assets||Highway monitoring|
|Directional Signage structures with advertising space||Emergency services|
|Street lighting with advertising space|
|Open spaces, including but not limited to truck parks and rest areas|
The Vendors Market Place, VMP, is a feature under the VAC. It is a Portal to link prospective concessionaires with verified and registered local businesses that would offer various services within the concession. This is to help promote local content and particularly small businesses in the Initiative. The portal would be launched along with the HDMI Micro-site and qualified vendors would be able to register.
● Under the UAA vendors are able to submit applications for permits/approvals to Build, Operate and/or Maintains assets along the ROW of the highways.
● Under the VAC, the ICRC on 29 January, 2021, issued a Certificate of Compliance to the Ministry of Works and Housing for the 12 routes selected. What this means is that the ministry had met all the conditions necessary to proceed to the next stage of procurement of the HDMI scheme
● The procurement process for this phase kicked-off on the 29th March 2021 with the Request for Qualification (RFQ).
● The FMW&H, with the approval of the ICRC, has adopted a two-stage bidding process for the selection of the Bidder for the award of the Project. The first stage (the “Qualification Stage”) of the process involves qualification of interested parties/consortia who submits an Application in accordance with the provisions of the RFQ.
● At the end of this stage, the Contracting Authority expects to announce a short-list of suitable qualified Applicants who shall be eligible for participation in the second stage of the Bidding Process comprising of the Request for Proposals (the“RFP”).
● There are other statutory approvals and processes before the project can be implemented. These are summarized in the Project Information Memorandum which can be downloaded from the portal.
● Yes, there is. Under the Federal Highway Act, the Federal Ministry of Works and Housing has statutory responsibility for Federal highway network. The Minister is also empowered to make provisions generally for the regulation of the use of Federal highways and for the management, direction and control of Federal highways.
● The Infrastructure Concession Regulatory Commission (ICRC) is mandated by law. It has the regulatory oversight over Ministries, Departments and Agencies in developing bankable PPP projects.
● The estimated private sector investment required for the 12 routes of the pilot phase is N1,34 trillion and the impact such investment will have on the economy cannot be overemphasized.
The HDMI E-portal, will serve as the hub for the web portal and for the management of the HDMI throughout the life cycle of the initiative from Procurement to Implementation.
The functions of the portal include but not limited to the following:
1. General Functions
i. Overview of entire initiative
ii. Access to webinars, news, animations videos for the sensitization campaign, and design specifications for all highway furniture and corresponding animations and all other supporting material/documents.
2. Value-Added Concession (VAC)
i. The two stage Bidding Process RFQ and RFP would be done through the E-portal detailed instructions are found on the portal when it is live.
ii. All necessary documents are available which include PIM, Bidding documents, ICRC and PPP guidelines.
iii. Vendor market is also under the VAC to promote local participation. Small businesses and vendors would be able to register and be part of a vendor portal to partner with prospective concessionaires.
3. Unbundled Assets Approval (UAA)
i. This portal is the electronic hub for managing new and existing proposals for various licenses and permits for the use of the right of way such as Operation of Weighbridges, Advertising assets, Directional Signage structures with advertising space, Telecommunication assets, Open spaces, including but not limited to operation of truck parks and rest areas.
ii. Vendors would now be encouraged to submit application electronically through this channel.
iii. All necessary documents can be uploaded as highlighted in the Federal Highways regulations on the use Right of Way (R.O.W).
iv. Any existing vendors on the ROW are expected to validate their permits in line with the Ministry’s campaign on the management of highway ROW.
On each highway route, there are economic opportunities for:
o Erection of gantries and directional signage
o Toll plaza operations
o Weighbridges Station operation
o Advertising income and Street lighting opportunities
o Hospitality and Rest Areas services with facilities for catering, lodging, fueling, car repairs, spare parts sales opportunities;
o Road construction, repairsand maintenance
o Vegetation and landscaping
o Towing vehicle operations
o Lane marking with thermoplastic paints
o Waste management
o Right of way management for telecommunication assets.
o Ambulance and emergency services
● The Highway Development & Management Initiative is another developmental project of the present administration. And like other developmental projects, it will take some time to come to fruition. It is not another quick fix but a well thought-through process that will deliver significant values to Nigerians when done.
● We are committed to running a PPP process that will be properly and diligently executed in a transparent manner to allow the most competent bidders compete vigorously and secure for the nation, private sector partners that can deliver on service and expected dividends to Nigerians.
● The RFQ stage is one aspect of a robust PPP Procurement process. After this stage, there will be an Evaluation Stage, then RFP Stage, Selection of Preferred Bidders, Negotiation, Submission of Full Business Case, FEC Approval, Commercial Close and Financial Close, amongst others. Each of these stages require a period of time to achieve before we progress into the development stage.
The Federal Ministry of Works and Housing, in collaboration with the ICRC, will soon advertise the Request for Qualification (RFQ) bidding process for the available categories under the HDMI scheme
The process will be transparent to allow the most effective bids to compete vigorously in a process that delivers service and dividend to Nigerians. (technically and financially capable firms/consortiums).
We are determined to ensure our assets are entrusted into capable hands. Therefore, interested persons, companies and groups are advised to
a. Form consortiums of construction/road maintenance companies, financiers, toll operators, rest house operators, advertising companies, lane marking experts, refuse managers and other partners.
b. Tour, visit or inspect the routes of interest;
c. Await the Call for Proposals.
● Further details can be accessed on this e-portal and the team can be reached directly through the contact page on the portal.
People can also call our Information Management Executives below:
o Mr. Bello 0803400 4242
o Mrs. Akinola 08033195737
o Dixon: 0806 607 7775