The Kaduna pilot project is thus far the first and also the last performance-based road contract ... more The Kaduna pilot project is thus far the first and also the last performance-based road contract ever practiced in Nigeria. Output and Performance-based Road Contract (OPRC) is a unique contract which unlike traditional roads contract, pays the contractor based on predetermined output and service level condition of the roads rather than input of works quantities. For those who are direct stakeholders in the design and implementation of this unique contract and also to the beneficiaries, this project has brought so much smiles and succour to their lives both socially and economically. 460km of rural roads were constructed/rehabilitated and maintained within the 5 year contract period. Amongst other things, the project has opened up new communities and linked existing ones; it has created new businesses and brought about new markets; it enabled farmers to easily evacuate and transport their farm produce; it enabled many communities to access health care facilities and education; it reduced and prevented many issues of insecurity etc.
I played the role of a Civil Engineer in the OPRC project with the supervising consultant i.e. Yaroson Partnership Limited, since from inception in 2011 to the final completion in July 2016. During the course of this project, the story was as unique as the project, many challenges were encountered, and some were surmounted while some were not. Lessons were learnt and were regularly and diligently documented. We spent 60 complete months in the execution of the contracts of which first 24 months were mainly construction works and the remaining 36 months were full maintenance as designed in the contract. N6.75 Billion was expended in the project construction and maintenance over the 5 year contract period.
This write-up is mainly aimed at educating all government and non-governmental organizations/individuals about the OPRC experiences, benefits, challenges and best way to adopt and implement it. It is also aimed at educating those within the civil/ highway engineering field about the OPRC concept, design, and implementation and gives a comparative view between OPRC and traditional roads contract. The write-up purposely focused on the only four pilot OPRC contracts executed in Kaduna State, Nigeria. Hence, all views and recommendations were majorly drawn from the experiences and challenges faced during the cause of these four project contracts.
The paper was written since 2016 at the completion of the contracts but due to some reasons I was not able to publish it until now. Among the reasons why I was compelled to hastily publish it now is due to the fact that I realised that four years after the contracts completion, the Nigerian government at both federal and states levels are yet to continue and show no sign of continuing with this unique and viable type of roads contract. I pray that this piece of write-up will draw attention of the decision makers and they will have a second look at the overall OPRC concept towards its wider adoption and implementation.
This research examines the effect of cost of capital (cost of debt and cost of equity) on financi... more This research examines the effect of cost of capital (cost of debt and cost of equity) on financial performance of construction companies listed on the Nigerian Stock Exchange. It covers the four listed construction firms in Nigeria (Arbico Nigeria Plc, Julius Berger Nigeria Plc, Roads Construction Nigeria Plc and UPDC), between the periods 2008 to 2017. The study uses descriptive statistics and Multiple Linear Regression to test the hypotheses. Diagnostic tests of Linearity, Autocorrelation, Multicollinearity, Heteroscedasticity and Panel Effect was conducted to test the suitability of the regression model. Two equations were generated from the research model. Equation 1 has Return on Asset as the dependent variable with Cost of Debt and Cost of Equity as independent variables. Equation 2 have Return on Equity as the dependent variable and the same variables as equation 1 for the independent variables. The regression analysis shows that Equation 2 (with ROE as dependent variable) is not fit, hence Equation 1 was adopted for the test of hypotheses. The results reveal that cost of debt has insignificant negative effect on financial performance of the construction companies on one side. However the results reveal that cost of equity has a significant positive effect on financial performance of the construction companies. The research recommended that companies should put more emphasis in obtaining financial equity capital rather than debt capital given that equity capital has positive effect on firms’ performance while debt capital has negative effect even though it is insignificant. The research also recommended government should introduce a criteria, in which any company that needs to bid for a project of hundred million naira and above, must be listed in the NSE.
The Kaduna pilot project is thus far the first and also the last performance-based road contract ... more The Kaduna pilot project is thus far the first and also the last performance-based road contract ever practiced in Nigeria. Output and Performance-based Road Contract (OPRC) is a unique contract which unlike traditional roads contract, pays the contractor based on predetermined output and service level condition of the roads rather than input of works quantities. For those who are direct stakeholders in the design and implementation of this unique contract and also to the beneficiaries, this project has brought so much smiles and succour to their lives both socially and economically. 460km of rural roads were constructed/rehabilitated and maintained within the 5 year contract period. Amongst other things, the project has opened up new communities and linked existing ones; it has created new businesses and brought about new markets; it enabled farmers to easily evacuate and transport their farm produce; it enabled many communities to access health care facilities and education; it reduced and prevented many issues of insecurity etc.
I played the role of a Civil Engineer in the OPRC project with the supervising consultant i.e. Yaroson Partnership Limited, since from inception in 2011 to the final completion in July 2016. During the course of this project, the story was as unique as the project, many challenges were encountered, and some were surmounted while some were not. Lessons were learnt and were regularly and diligently documented. We spent 60 complete months in the execution of the contracts of which first 24 months were mainly construction works and the remaining 36 months were full maintenance as designed in the contract. N6.75 Billion was expended in the project construction and maintenance over the 5 year contract period.
This write-up is mainly aimed at educating all government and non-governmental organizations/individuals about the OPRC experiences, benefits, challenges and best way to adopt and implement it. It is also aimed at educating those within the civil/ highway engineering field about the OPRC concept, design, and implementation and gives a comparative view between OPRC and traditional roads contract. The write-up purposely focused on the only four pilot OPRC contracts executed in Kaduna State, Nigeria. Hence, all views and recommendations were majorly drawn from the experiences and challenges faced during the cause of these four project contracts.
The paper was written since 2016 at the completion of the contracts but due to some reasons I was not able to publish it until now. Among the reasons why I was compelled to hastily publish it now is due to the fact that I realised that four years after the contracts completion, the Nigerian government at both federal and states levels are yet to continue and show no sign of continuing with this unique and viable type of roads contract. I pray that this piece of write-up will draw attention of the decision makers and they will have a second look at the overall OPRC concept towards its wider adoption and implementation.
This research examines the effect of cost of capital (cost of debt and cost of equity) on financi... more This research examines the effect of cost of capital (cost of debt and cost of equity) on financial performance of construction companies listed on the Nigerian Stock Exchange. It covers the four listed construction firms in Nigeria (Arbico Nigeria Plc, Julius Berger Nigeria Plc, Roads Construction Nigeria Plc and UPDC), between the periods 2008 to 2017. The study uses descriptive statistics and Multiple Linear Regression to test the hypotheses. Diagnostic tests of Linearity, Autocorrelation, Multicollinearity, Heteroscedasticity and Panel Effect was conducted to test the suitability of the regression model. Two equations were generated from the research model. Equation 1 has Return on Asset as the dependent variable with Cost of Debt and Cost of Equity as independent variables. Equation 2 have Return on Equity as the dependent variable and the same variables as equation 1 for the independent variables. The regression analysis shows that Equation 2 (with ROE as dependent variable) is not fit, hence Equation 1 was adopted for the test of hypotheses. The results reveal that cost of debt has insignificant negative effect on financial performance of the construction companies on one side. However the results reveal that cost of equity has a significant positive effect on financial performance of the construction companies. The research recommended that companies should put more emphasis in obtaining financial equity capital rather than debt capital given that equity capital has positive effect on firms’ performance while debt capital has negative effect even though it is insignificant. The research also recommended government should introduce a criteria, in which any company that needs to bid for a project of hundred million naira and above, must be listed in the NSE.
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I played the role of a Civil Engineer in the OPRC project with the supervising consultant i.e. Yaroson Partnership Limited, since from inception in 2011 to the final completion in July 2016. During the course of this project, the story was as unique as the project, many challenges were encountered, and some were surmounted while some were not. Lessons were learnt and were regularly and diligently documented. We spent 60 complete months in the execution of the contracts of which first 24 months were mainly construction works and the remaining 36 months were full maintenance as designed in the contract. N6.75 Billion was expended in the project construction and maintenance over the 5 year contract period.
This write-up is mainly aimed at educating all government and non-governmental organizations/individuals about the OPRC experiences, benefits, challenges and best way to adopt and implement it. It is also aimed at educating those within the civil/ highway engineering field about the OPRC concept, design, and implementation and gives a comparative view between OPRC and traditional roads contract. The write-up purposely focused on the only four pilot OPRC contracts executed in Kaduna State, Nigeria. Hence, all views and recommendations were majorly drawn from the experiences and challenges faced during the cause of these four project contracts.
The paper was written since 2016 at the completion of the contracts but due to some reasons I was not able to publish it until now. Among the reasons why I was compelled to hastily publish it now is due to the fact that I realised that four years after the contracts completion, the Nigerian government at both federal and states levels are yet to continue and show no sign of continuing with this unique and viable type of roads contract. I pray that this piece of write-up will draw attention of the decision makers and they will have a second look at the overall OPRC concept towards its wider adoption and implementation.
I played the role of a Civil Engineer in the OPRC project with the supervising consultant i.e. Yaroson Partnership Limited, since from inception in 2011 to the final completion in July 2016. During the course of this project, the story was as unique as the project, many challenges were encountered, and some were surmounted while some were not. Lessons were learnt and were regularly and diligently documented. We spent 60 complete months in the execution of the contracts of which first 24 months were mainly construction works and the remaining 36 months were full maintenance as designed in the contract. N6.75 Billion was expended in the project construction and maintenance over the 5 year contract period.
This write-up is mainly aimed at educating all government and non-governmental organizations/individuals about the OPRC experiences, benefits, challenges and best way to adopt and implement it. It is also aimed at educating those within the civil/ highway engineering field about the OPRC concept, design, and implementation and gives a comparative view between OPRC and traditional roads contract. The write-up purposely focused on the only four pilot OPRC contracts executed in Kaduna State, Nigeria. Hence, all views and recommendations were majorly drawn from the experiences and challenges faced during the cause of these four project contracts.
The paper was written since 2016 at the completion of the contracts but due to some reasons I was not able to publish it until now. Among the reasons why I was compelled to hastily publish it now is due to the fact that I realised that four years after the contracts completion, the Nigerian government at both federal and states levels are yet to continue and show no sign of continuing with this unique and viable type of roads contract. I pray that this piece of write-up will draw attention of the decision makers and they will have a second look at the overall OPRC concept towards its wider adoption and implementation.