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East-West Road tops N467.3b federal contracts

Posted by thephctelegraph on 2006/07/21 | Views: 442 |

East-West Road tops N467.3b federal contracts

Contracts worth N467.3 billion have been approved nationwide by the Federal Executive Council (FEC) in four sectors of the country's economy....

Contracts worth N467.3 billion have been approved nationwide by the Federal Executive Council (FEC) in four sectors of the country's economy, with the dualisation of the East -West Road topping the list.

The projects, approved at the meeting presided over by President Olusegun Obasanjo, are to span roads, N438.9 billion; power, N13.03 billion; water supply, N12.56 billion; and transport, N2.8 billion.
Coming behind the East-West Road is the dualisation of the Kano-Maiduguri road, which when completed, would be the first dualised expressway in the North East geo-political zone.

The long-awaited construction of the East -West road would take N235 billion. It would link the five coastal states of the Niger Delta, including Delta, Bayelsa, Rivers, Akwa Ibom and Cross River States.

The contract for the road was split into four sections. First is the dualisation of the Warri-Kaigama section. This would cost a total of N67.5 billion. The second part is the Kaigama-Port Harcourt section to be executed at a total cost of N83.4 billion. The Port Harcourt - Eket section would cost N52.2 billion while the Eket - Oron section is to cost N32.06 billion.
The consultant for the East-West road's contract is Guy Otobo & Partners. All the projects have a completion period of 48 months.

The Minister of Information and National Orientation, Mr. Frank Nweke, told journalists after the council meeting that the funding for the East-West road project for 2006 would come from two sources.
The first part, totalling N16 billion, would come from the 2006 budget of the Niger Delta Development Commission (NDDC). The second would come from an expected 2006 supplementary budget for the project put at N7.52 billion.
The funds are for the mobilisation of contractors to site. From next year (2007), the funding would come from the approved budgets.
The council also approved another strategic Trans-Saharan regional road spanning the North-West state of Kano, traversing the North East and ending in Maiduguri.
The total cost is put at N183 billion. Similarly, the road is divided into five and awarded to different contractors, for easy and speedy execution.

The first section of the road, the Kano-Wudil-Shuware end would cost N39.5 billion. The Shuware-Azare section would cost N38.5 billion while the Azare-Potiskum phase will cost N31.6 billion. The Potiskum-Damaturu phase will cost N32.6 billion, and the Damaturu-Maiduguri phase will take N39.9 billion.

Funding for the Kano-Maiduguri road would come for now from the stabilisation fund. This would involve a total of N15 billion. An additional amount of N3.2 billion would come from the supplementary budget for 2006 to be submitted to the National Assembly for approval.
The council also approved the take-off of the dualisation of the ever busy Abuja-Abaji-Lokoja Road connecting the Northern part of the country to the South.

The road is divided into two sections. The first, the Abuja - Abaji end is to cost N11.2 billion while the Abaji-Lokoja end would cost N9.6 billion.
Funding for the project will be initially sourced from the stabilisation fund to the tune of N5 billion.
For the power supply sector, Nweke listed the projects to include the following:
The Afam-Port Harcourt power transmission line and a substation at the cost of N1.2 billion and N2.3 billion;
Abakaliki-Ikom-Obudu transmission line at the cost of N3.5 billion;
Obudu sub-station at the cost of N528 million;
New Haven-Ninth Mile-Nsukka transmission line at the cost of N1 billion; and
a sub-station to be sited in Nsukka at the cost of N620.5 million.

The council also approved contracts for the Ikom-Abakaliki-Nkalagu sub-station at the cost of N914 million; Kukwaba (Abuja) sub-station for N961 million; Benin-Okada transmission line at the cost of N694.8 million and the Okada (Edo State) sub-station at the cost of N898.3 million.
All the new projects under the power sector have a completion period of 18 months, that is, if government meets its financial commitments to the contractors.
However, maintenance projects approved by the council for sub-stations in the Lagos area would have a completion period of four months. To be affected in the Lagos area include the Akoka, Itire, Amuwo and Apapa points.
Nweke said the projects were parts of the government's continuing effort to re-kit the power supply infrastructure after a terrible neglect in the two decades preceding the Obasanjo civilian government in 1999.

The projects will help to evacuate power generation expected from the 19 power stations the government is undertaking at the moment, in a bid to reach the target of 10,000 megawatts of electricity by the end of 2007.
The FEC also approved a request from the Ministry of Transport for the maintenance of the Apapa Dockyard Wharf Three at the cost of N1 billion in 15 months' time; and the rehabilitation of the Port Harcourt ports at the cost of N1.8 billion.

The council also approved contracts for the Galma Dam in Kaduna State at the cost of N4.93 billion and the Owena Dam treatment plant at the cost of N5.5 billion.
According to the Minister of Water Resources, Muktar Shagari, the ministry is also acquiring a machine for clearing of waterways and silting at an offshore cost of $3.1 million and local component of N392 million.

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Comments (23)

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