Home News N100bn Bond: Why 21km Ajia-Airport Project Is ‘Costlier’ Than 63km Iseyin-Akinyele Road...

N100bn Bond: Why 21km Ajia-Airport Project Is ‘Costlier’ Than 63km Iseyin-Akinyele Road — Makinde



The Chief Press Secretary to Governor Seyi Makinde, Taiwo Adisa has explained why the amount approved for the construction of the 21 km Ajia-Airport road is more than the 63 km Iseyin-Akinyele road.

OYOINSIGHT.COM reported that the state government had approved a N100 billion bond for the implementation of some physical projects in the state.

However, some residents raised alarm and questioned the rationale behind this decision.
Reacting the questions, the CPS, in a press statement made available to newsmen on Sunday noted that the two projects can’t be equated.

He wrote: “For the avoidance of doubt, the 21 km Ajia-New Ife Express Road project with spur at Amuloko being constructed under the Alternative Project Funding Approach (APFA), a Design, Build, Finance project, at a total cost of N8.5 bn cannot be equated to the moribund and revoked Moniya-Iseyin road project awarded under the administration of the late Governor Abiola Ajimobi.

“The Ajia-Airport project is a Public, Private, Partnership (PPP) project which will benefit from private funds. Rather, the investor has taken the risk of tying his funds to that project because of his firm belief in the economic recovery efforts of Governor Makinde.

“It would be recalled that the failed N7 billion road contract awarded under the immediate past administration in Oyo State was never meant to be executed (as it was merely a job for the boys) targeted at raising funds for the 2019 electiion. It unsurprisingly failed to really take off and Governor Makinde was left with no other option than to revoke the contract, review, upgrade and eventually re-award it to a more competent contractor who is presently on site.

“The Ajia-Airport Road project is not only a well-thought out project but one that will signpost the determination of the administration in institutionalising the culture of Public, Private Partnership as exemplified in the establishment of the high-riding Oyo State Investment and Public, Private Partnership Agency (OYSIPPPA), which is already recording huge successes in its pioneering deals.”

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