Lagos Seals PPP Deal for Fourth Mainland Bridge, Rules Out Borrowing

The Lagos State Government has reaffirmed its commitment to delivering the long-awaited Fourth Mainland Bridge through a public-private partnership, ruling out borrowing to finance the multibillion-naira project.

Deputy Governor and All Progressives Congress governorship candidate, Obafemi Hamzat, disclosed this during an interview on Lagos Television on Tuesday, saying the state cannot fund the bridge and major rail projects simultaneously from its own coffers.

“The Fourth Mainland Bridge is a fantastic project that we must build, but we cannot fund it on our balance sheet and fund rail at the same time. They are both monster projects, so we’ve been talking to investors,” Hamzat said.

He revealed that investors from Portugal, China and other countries had shown interest, adding that the project had been designed and its cost assessed, with private-sector professionals engaged to support negotiations.

Hamzat explained that the government was avoiding excessive borrowing because of the pressure it could place on the state’s finances, stressing that partnerships remain the safest financing model.

“We will build it with partnerships, but it’s also important that we know that it will be expensive and we don’t want to borrow to build it because it might be a challenge for us. So that’s why we believe it must be a PPP,” he said.

He, however, identified toll payment as a sticking point in attracting investors, noting that some prospective partners were worried about the reluctance of road users to pay tolls, particularly where collection had been discontinued.

“When we pay tolls on our road, and we stop it, investors are not going to come. How do they get their money? Return on investments. How will they get it?” he asked.

According to Hamzat, the government is presenting traffic data and other relevant information to investors to demonstrate the project’s viability and the demand for improved infrastructure in Lagos.

He added that the government needed to address investors’ concerns and convince them that investing in major infrastructure projects in the state would be worthwhile.

The Fourth Mainland Bridge is a proposed major road project intended to improve connectivity across Lagos and provide an alternative route to ease pressure on existing roads.