ABUJA — TO ensure the multi-billion Naira East-West road that stretches across the six states of the South-South was not abandoned, the Federal Government, yesterday, approved additional funding of N106 billion as augmentation cost for the project.
The fresh funding initiative covers sections I, II and III of the road, thereby bringing the total sum to N245 billion, as against the original cost of N138 billion
The 2011 budget for the Ministry of Niger Delta Affairs is N55. 2 billion while N51.9 billion is for capital project. For the East-West road, N15.6 billion has been set outside for the project in 2011 appropriation.
Briefing State House correspondents after the weekly Federal Executive Council, FEC, meeting presided over by President Goodluck Jonathan, Mr Labaran Maku, Minister of Information, who was joined by Zainab Ibrahim Kuchi, Minister of State, Niger Delta Affairs said those who designed the initial project failed to take into account the difficult terrain of the region and that for the project to meet the required standard, government had to review the entire road structure.
Consequently, he said the ministry had to take the project into the drawing board again for the redesign of the shoulders and the width to meet the required standard and it is expected to be completed by 2013.
Maku stated further that there was hardly any road or dam project that you give at the beginning that would not end up in review, adding that when the project was awarded in 2006, the cost by the original contractor, Julius Berger, was so much that government refused to touch it.
He explained that the dualization of the project “is a landmark intervention of the Federal Government on infrastructure in the Niger Delta region”.
The minister noted that “the augmentation of the project became imperative to adequately complete East-West road project, which by its location in the oil industry zone, is an emerging heavily trafficked road in Nigeria which calls for a stable road pavement that is less prone to frequent failure and disruption of traffic flow”.
In attempt to justify the huge augmentation of the project, Kuchi said work would have stopped on the project by the end of August 2011 had the FEC not approved the request for the N106 billion augmentation of the project.
She also blamed militancy, incessant rainfall in the region as well as budgetary constraints for the slow pace of work and denied that the government at any point in time abandoned the work.
The minister however failed to answer reporters’ questions on why those who designed the initial project have been left unpunished and allowed the government waste such huge amount of money on augmentation.
Kuchi said the project which is almost 40 per cent completed when fully completed will create 2000 additional jobs in line with this administration’s transformation agenda.
Breakdown of the cost of the three sections are Warri-Kaiama, in Delta State which was increased from N64 billion to N112 billion while the Port Harcourt-Ahoada, in River State was increased from the original contract sum of N29. 9 billion to N48 billion.
The Ahoada-Kaiama section was increased from N44 billion to N84 billion bringing the total sum to N245 billion from the original contract sum of N138. 9 billion.
He said the investment will cover physical infrastructure, human capital development and other sundry projects and that it will involve the private, public (federal, states, local government), development partners and the Diaspora.
Other approval given by the council Maku said was the design, manufacture, supply, installation and commissioning of Olorunsogu, Ogun state and Akure, Ogun state, sub-station projects under the Transmission Company of Nigeria (TCN), by the ministry of power, at a cost of N8.31 billion both naira and dollar components.
The minister said the approval was “in furtherance of the Federal Government plan of providing adequate, reliable and stable national grid that can handle the expected new generation capacity from PHCN and Independent Power Producers”.
The 2x150MVA, 330/132KV plus 2x60MVA, 132/33KV substation at Akure, Ondo State with a single Turn In/Turn Out and 2x330KV line bay extensions at Osogbo and Benin North sub-stations will cost the government $19 million payable at prevailing exchange rate at the time of payment plus N1. 5 billion inclusive of a provisional sum of N505, 050,433.43 million per cent VAT on onshore payments, compensation and contingency, with a completion period of 24 months.
The 2x150MVA, 330/132KV plus 2x60MVA, 132/33KV substation at Olorunsogo will cost $15 milloin plus N1.2 billion inclusive of a provisional sum of N377 million per cent VAT on onshore payments, compensation and contingency, with a completion period of 24 months.
Click to signup for FREE news updates, latest information and hottest gists everydayThe fresh funding initiative covers sections I, II and III of the road, thereby bringing the total sum to N245 billion, as against the original cost of N138 billion
A failed portion at the Ore end of the Sagamu/Benin Expressway during an inspection tour of bad spots on the road preparatory to its repair by Ondo State Government in Ore on Wednesday
Briefing State House correspondents after the weekly Federal Executive Council, FEC, meeting presided over by President Goodluck Jonathan, Mr Labaran Maku, Minister of Information, who was joined by Zainab Ibrahim Kuchi, Minister of State, Niger Delta Affairs said those who designed the initial project failed to take into account the difficult terrain of the region and that for the project to meet the required standard, government had to review the entire road structure.
Consequently, he said the ministry had to take the project into the drawing board again for the redesign of the shoulders and the width to meet the required standard and it is expected to be completed by 2013.
Maku stated further that there was hardly any road or dam project that you give at the beginning that would not end up in review, adding that when the project was awarded in 2006, the cost by the original contractor, Julius Berger, was so much that government refused to touch it.
He explained that the dualization of the project “is a landmark intervention of the Federal Government on infrastructure in the Niger Delta region”.
The minister noted that “the augmentation of the project became imperative to adequately complete East-West road project, which by its location in the oil industry zone, is an emerging heavily trafficked road in Nigeria which calls for a stable road pavement that is less prone to frequent failure and disruption of traffic flow”.
In attempt to justify the huge augmentation of the project, Kuchi said work would have stopped on the project by the end of August 2011 had the FEC not approved the request for the N106 billion augmentation of the project.
She also blamed militancy, incessant rainfall in the region as well as budgetary constraints for the slow pace of work and denied that the government at any point in time abandoned the work.
The minister however failed to answer reporters’ questions on why those who designed the initial project have been left unpunished and allowed the government waste such huge amount of money on augmentation.
Kuchi said the project which is almost 40 per cent completed when fully completed will create 2000 additional jobs in line with this administration’s transformation agenda.
Breakdown of the cost of the three sections are Warri-Kaiama, in Delta State which was increased from N64 billion to N112 billion while the Port Harcourt-Ahoada, in River State was increased from the original contract sum of N29. 9 billion to N48 billion.
The Ahoada-Kaiama section was increased from N44 billion to N84 billion bringing the total sum to N245 billion from the original contract sum of N138. 9 billion.
He said the investment will cover physical infrastructure, human capital development and other sundry projects and that it will involve the private, public (federal, states, local government), development partners and the Diaspora.
Other approval given by the council Maku said was the design, manufacture, supply, installation and commissioning of Olorunsogu, Ogun state and Akure, Ogun state, sub-station projects under the Transmission Company of Nigeria (TCN), by the ministry of power, at a cost of N8.31 billion both naira and dollar components.
The minister said the approval was “in furtherance of the Federal Government plan of providing adequate, reliable and stable national grid that can handle the expected new generation capacity from PHCN and Independent Power Producers”.
The 2x150MVA, 330/132KV plus 2x60MVA, 132/33KV substation at Akure, Ondo State with a single Turn In/Turn Out and 2x330KV line bay extensions at Osogbo and Benin North sub-stations will cost the government $19 million payable at prevailing exchange rate at the time of payment plus N1. 5 billion inclusive of a provisional sum of N505, 050,433.43 million per cent VAT on onshore payments, compensation and contingency, with a completion period of 24 months.
The 2x150MVA, 330/132KV plus 2x60MVA, 132/33KV substation at Olorunsogo will cost $15 milloin plus N1.2 billion inclusive of a provisional sum of N377 million per cent VAT on onshore payments, compensation and contingency, with a completion period of 24 months.
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