In a bid to counter the escalating prices of the Abuja-Kaduna Highway mission, the Federal Authorities is considering collaborating with Dangote Industries Restricted for the preliminary 40 kilometres underneath the Tax Credit score scheme.
The mission, initiated in 2018 with an preliminary price range of N165 billion, has seen prices surge to a staggering N1.35 trillion, a rise of about 718%.
Regardless of reservations expressed by the Minister of Works, Mr. David Umahi, over the mission’s elevated price, he stays dedicated to finishing the remaining part earlier than the shut of 2024.
Talking throughout a gathering with administrators of the ministry in Abuja on Thursday, Umahi highlighted the ministry’s dedication to overcoming contractual challenges and delivering the mission for the advantage of Nigerians throughout the specified timeframe.
What the Minister stated
Umahi stated:
- “The ministry has some supervision work to be accomplished tomorrow on that street and we will likely be suggested on the actual designs of the 2 sections.
- “Funding can be a difficulty as a result of it’s underneath the presidential growth fund initiative obtained from looted funds. I’ve needed to focus on with Mr president concerning the significance of the street for all Northerners.
- “However I received’t be capable of return to him till we re-scope it as a result of the mission was N165 billion earlier than and a assessment introduced the associated fee to N655 billion.
- “However as we speak, the contractor is asking for N1.35 trillion and the federal government can not afford it.
- “What they’re asking may be very flawed. So, they’re taking a look at present subgrade and see what we will do about it.
- “We’re additionally wanting on the first 40 kilometres to be constructed by Dangote underneath the Tax credit score scheme to do it on concrete pavement, however I’m very dedicated to finishing that street this yr. It doesn’t matter what occurs, that street will likely be accomplished this yr.”
FG to assessment present street contracts by January ending
The minister additionally outlined the federal government’s intention to scrutinize contracts missing substantial progress, addressing non-performing contractors as a part of the Freeway Improvement Administration Initiative involving the non-public sector. He emphasised that the associated fee, scope, and technical features of those contracts would endure a complete assessment, to finish the evaluation by the top of January.
Moreover, the minister disclosed his request for a 5% fairness contribution or assure from contractors. This measure goals to safe a dedication from contractors genuinely dedicated to the mission.
Relating to the ministry’s major focus areas, he highlighted that if granted a price range of N892 billion for operational actions, the ministry would be certain that each penny is utilized effectively by December 2024.
Moreover, the continued reconstruction of the expressway, presently overseen by Julius Berger, is financed underneath the presidential growth fund initiative and is strategically divided into three sections.
