Umahi Reveals Funding Structure for Lagos-Calabar Highway

The Federal Government is contributing 30% of the funding for the Lagos-Calabar Coastal Highway, while external lenders will provide the remaining 70%, as disclosed by Minister of Works, Senator Dave Umahi. This funding arrangement is implemented under an Engineering, Procurement, Construction and Financing (EPC+F) model, with financing institutions conducting due diligence before committing funds.

Umahi noted that Deutsche Bank is financing the first section of the highway, which has been oversubscribed by $100 million. He emphasized that the project's cost should not be judged merely by dividing total expenditure by the number of kilometers, due to the complex terrain along the route.

Some sections require excavation of up to 10 meters and extensive filling, with provisions for a rail corridor. The first section, measuring 47.47 kilometers, has been completed, while construction on other sections continues.

The Federal Ministry of Finance confirmed a $747 million syndicated loan led by Deutsche Bank for Phase One, Section One of the project.