Tuesday, December 15, 2015

Lagos-Ibadan Expressway: Court sets aside fresh concession.

A Federal High Court in Lagos has set aside the fresh concession agreement on the Lagos-Ibadan Expressway reconstruction project.

While delivering his ruling in a suit filed by Bi-Courtney Highway Services Limited against the Attorney General of the Federation and Minister of Justice, the Federal Ministry of Works, Infrastructure Concession Regulatory Commission, The Infrastructure Bank Plc and Motorway Assets Limited on Friday, Justice Ibrahim Buba granted a mandatory injunction on the fresh concession agreement purportedly signed by the defendants on January 16, 2015, as prayed by the plaintiff/applicant.

Among the prayers sought by Bi-Courtney in suit No. FHC/L/CS/727/2015 was an order of mandatory injunction setting aside the concession agreement granted MAL over the road in the form of a Finance, Operate and Transfer arrangement involving the Federal Government.

The court held that the grant of the concession to MAL in the circumstances of the case was a flagrant disregard for the established principles of law.

Bi-Courtney also sought in its application an “interlocutory injunction restraining all the defendants/respondents, particularly the 1st, 2nd and 5th defendants/respondents from implementing, giving effect to, actualising, operating or, howsoever, taking any steps or actions whatsoever in furtherance of, or pursuant to the concession agreement dated 16th of January 2015, between the 1st, 2nd and the 5th defendants/respondents, which purports to grant a concession over the Lagos-Ibadan Expressway in the form of a Finance, Operate and Transfer arrangement to the 5th defendant pending the hearing and determination of the substantive suit herein.”

It was reported on November 4, 2015 that MAL was looking for N150bn for the second tranche of funds to execute the road project as the new private sector investor in charge of the redevelopment after the controversial cancellation of the concession agreement with Bi-Courtney on November 19, 2012, even as Federal Government agencies maintained that there was no new concession agreement on the road.

The ICRC had issued a statement on December 3 that it was not aware of any new concession on the road, while Bi-Courtney insisted that the revocation of its concession agreement with the Federal Government was illegal and without recourse to due process.

Source:The Punch
 

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