Thread by @JohnFanimokun

What You Need To Know About Highway Development & Management Initiative, HDMI.

HDMI is another pillar of the present administration’s commitment to sustainable development of Nigeria’s economy through robust infrastructural upgrade.

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HDMI is a brainchild of the @FMWHNIG.

HDMI is another PPP (Public-Private Partnership) approach to improving road infrastructure in Nigeria like the Tax-Credit Scheme and the SUKUK Bond.

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HDMI is a Public-Private Partnership program that seeks sustainable development of parts of Nigeria's 35,000km of federal highway network by leveraging private sector’s order, efficiency, accountability, and profitable entrepreneurship in the operation,
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management, and maintenance of all assets within the Right of Way.

HDMI was conceptualized and developed in collaboration with the Infrastructure Concession Regulatory Commission, ICRC.

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Other Strategic Partners that contributed in the development of HDMI include KPMG, UKNIAF, and IFC.
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HDMI is backed by law. Under the Federal Highway Act, the @FMWHNIG 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

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for the management, direction and control of federal highways.

HDMI will be executed in two major categories:

~ The Value-Added Concession, VAC

~ The Unbundled Assets Approval, UAA

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Value-Added Concession, VAC
is the road pavement and entire right of way is concessioned for development and management by a concessionaire.

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The Unbundled Assets Approval, UAA approvals/permits are issued for individual assets on the right of way on a Build, Operate and maintain basis.

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The Vendors Market Place, VMP, is a feature under the VAC that links prospective concessionaires with verified & registered local businesses that would offer various services within the concession, with the aim of promoting local content &

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particularly small businesses in the Initiative.
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12 federal highways have been selected for concessions in the first phase of the VAC.

These 12 highways combined represent about 1,963 km and 5.6% of Nigeria’s 35,000km Federal Highway Network.

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The 12 earmarked highways of the first phase were carefully selected for commercial viability and equitable spread across the 6 geo-political zones of the country.

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HDMI will open up access to more social and economic activities as it connects more Nigerians to markets and opportunities across the country.

HDMI will enable the creation of a value chain of economic activities within the highway ecosystem.

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Through these value chain of economic activities, HDMI will stimulate the highway economy to live, and boost productivity (GDP).

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The value chain of economic activities that will come alive with HDMI will revolve around the creation of revenue-generating assets and operation of viable highway services that include:

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~ Erection of gantries and directional signage.

~ Advertising services and telecommunication assets
Weighbridge stations and truck parks.

~ Towing van operations and emergency services.

~ Auto repair workshops.

~ Refuse management.

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~ Rest area management with standard facilities such as chalets, restaurants, playground, farmers’ markets etc.

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There will be Farmers’ Markets in the Rest Areas, which will help farmers access markets in safe and secure environments, achieve quick sales and turnover on their farm produce, and reduce losses due to perishability.

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The initiative is estimated to create over 50’000 direct and 200’000 indirect jobs as Nigerians take up the multi-level opportunities in steel fabrication, construction, waste management, hospitality management, amongst others.

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On January 29, 2021, the ICRC issued a Certificate of Compliance to the FMWH at a ceremony in Abuja.

The award of the Certificate of Compliance represents an endorsement for the Ministry to proceed with the implementation of HDMI,

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..having been seen to have complied with all requisite rules and regulations.

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On March 23’ 2021, the Honorable Minister of Works and Housing, @tundefashola, issued a Ministerial Notice that the PPP Procurement process will commence on March 29’ 2021, with a RFQ advertisement and the opening of an e-portal for HDMI.

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The HDMI Procurement process has started with the Request For Qualification, RFQ advert and the e-portal opening on Monday 29th March, 2021 as announced by the Honorable Minister.

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The HDMI e-portal is: hdmi.worksandhousing.gov.ng

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The procurement process is transparent, diligent and robust to ensure that bidders compete fairly and vigorously, and to ensure the best qualified and most capable organizations, who can deliver on value and services to Nigerians, are shortlisted.

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HDMI will promote local content, industry, and the development of indigenous.

HDMI encourages participation of indigenous businesses through the Unbundled Assets Approval, UAA and Vendors’ Market Place, VMP.

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