Project variation cost in works, trade, investment ministries to gulp over N32bn – TrendyNewsReporters
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Project variation cost in works, trade, investment ministries to gulp over N32bn

Cabinet members constituting the Federal Executive Council (FEC) rose from their meeting on Wednesday, to approve a total sum of N32.742 billion for contract awards under the Ministry of Works and Housing as well as Industry, Trade and Investments.

The Minister of Works and Housing, Babatunde Fashola, who briefed State House Correspondents on their resolutions, revealed that the first memo approved for his ministry was for the augmentation of the contract of the Zaria-Funtua section of the Zaria-Sokoto-Birnin-Kebbi highway.

He explained that the augmentation was for N9.446 billion, increasing the contract sum to a total of N16.924 billion.

Explaining further, he said: “The augmentation caters for an extension of the scope of works on that section from 26 kilometres to a total of 64 kilometres. It also caters for the improvement of the pavement from a laterite-based pavement to a cement-based, concrete-mixed, stone-base pavement. It also makes provision for extensive drainage works to accommodate the increasing rain flow and flooding patterns that we have observed in the last few years. Council approved that memorandum.”

He noted that the second memorandum was presented by the ministry on behalf of one of her parastatals, the Federal Roads Maintenance Agency (FERMA), which is statutorily responsible for the maintenance and rehabilitation of certain roads.

Fashola also said FERMA requested and Council approved contracts awards to rehabilitate Kwara-Peta-Milda road in Borno in favour of Messrs. CBC Global Civil Engineering and Building Construction. The value of the award is N6,271,985,441

In the same vein, Council approved the rehabilitation of the Uturu-Isikwato-Akara Road in Abia State at the cost of N13.624 billion, to the 18th Engineering Company for 24 months.

On his part, Minister of Industry, Trade and Investments, Niyi Adebayo, who briefed on the memos he presented on behalf of his ministry, said the Council approved contracts for infrastructure in one of the six special economic zones that the Export Processing Zones Authority is creating for the special economic zones in Lekki.

The Nigerian Export Processing Zones Authority is a parastatal under the ministry.

He said: “As part of that special economic zone, there is a textile and garment part that is being put up and Council approved contract for the development of an initial five-megawatt power plant and electrical reticulation within the park, in favour of Messrs. Mustra Energy Limited, in the sum of N1.5 billion, inclusive of 7.5% VAT with a delivery period of 52 weeks.

“Council also approved the construction of an access road, with associated drainage works from the Lekki-Epe Expressway, through the textile and garment park, in favour of Messrs. Proportion Construction Works Limited, in the sum of N1.9 billion, inclusive of 7.5 VAT, with a delivery period of 52 weeks.

“The objective of developing the Special Economic Zones is to establish an economic zone with multifunctions of industry, commerce, trade, medical tourism, recreation and residence to attract foreign investment, create employment and expedite economic growth.

“As you’re all aware, constant power supply as well as provision of other infrastructure like roads is very important for the functioning of the Special Economic Zones and as a result of that, which Council approved the contract that I had previously mentioned. We are hopeful that once the Special Economic Zone is functional, it will generate employment for about 3500 Nigerians in the short term, and in the long term, it will provide employment for about 10,000 Nigerians.”

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