ABUJA – The Federal Executive Council (FEC) presided over by President Muhammadu Buhari on Wednesday approved the award of contract to Dangote Industries for the construction of five roads, totaling 274.9 kilometres, at the cost of N309,917,717,251.35 to be advanced by the company as tax credit.
Minister of Works and Housing, Babatunde Fashola, made the disclosure while briefing State House correspondents after the meeting.
Fashola explained that the road contract, which was the second approved for the ministry by council, will be executed on concrete and will be the larger of such project in the country.
He said: “The second memorandum presented by the Ministry of Works and Housing was for the construction or the reconstruction, as the case may be, of five road projects in favour of Messrs. Dangote Industries Limited, totaling 274.9 kilometres of federal roads, under the Federal Government Roads Infrastructure Tax Credit policy, which is one of our strategic partnerships with the private sector.
“Those five roads totaling 274.9 kilometres will cost N309,917,717,251.35 to be advanced by the Dangote Industries as tax credit.
“The roads, specifically, are Bama to Banki in Borno State for N51.016 billion with 49.153 kilometres; Dikwa to Gamboru-Ngala, 49.577 kilometres in Borno State for N55.504 billion; Nnamdi Azikiwe Road, popularly known as Western Bypass in Kaduna, 21.477 kilometres, from Command Junction to Kawu, in the sum of N37.560 billion and the deep seaport access road sections 1 and 3 in Lagos State, through Epe to Sagamu Expressway, 54.24 kilometres, that links Lagos and Ogun states, in the sum of N85.838 billion; the Obele/Ilaro/Papalanto to Sagamu Road, 100 kilometres in Ogun State, in the sum of N79.996 billion.
“Council considered and approved this memorandum, to facilitate the construction of 274 kilometres of concrete roads. So, this will be the largest single award of concrete roads ever undertaken by the government of Nigeria in one award.”
He further explained that the award of the contract to Dangote Group was consistent with funding options.
Explaining the circumstances surrounding the award of the contract, Fashola said: “First of all, the award is consistent with our multiple funding options, which includes engagement with the private sector.
“Secondly, the tax credit initiative was in existence in the last administration before this government, but was not utilised. So, this administration has revised it, expanded it, and has used it to construct roads like the Apapa Wharf Road, the Oworonsoki to Apapa, through Oshodi Road, by the same Dangote Group.”
“The Obajana-Kabba Road, still the Dangote Group. The Bodo-Bonny bridges and road, which Council approved last week, through the NLNG.
“There was also interest by many other companies that are being reviewed. So, it’s not unique to Dangote. So, he’s the one who has applied and we’ve been in this process. So, this is the next batch of roads that they are taking up.
“They invest their money and then instead of when their taxes come due for payment, they net it off. That’s the circumstance. This is not concessioning, this is tax credit policy, don’t let’s mix them together.”
Fashola also said council considered and approved the request to revise the cost of the construction of part of Michael Imoudu/ Ganmo/Afon Junction Road in Ilorin, Kwara State by N204,411,926.13, adding that the original contract sum was revised from N1.691 billion to N1.896 billion and the completion period is now 12 months.
Senior Special Assistant to the President on Media and Publicity, Garba Shehu, on his part said the memo presentations made by some ministers were approved by FEC including the formalisation of the Police Special Service in the interest of transparency and accountability.
He explained: “The Minister of Police Affairs also had an important scheme which was approved at Federal Executive Council meeting.
“It is the deployment of what they call Special Police Services. And this is about a new system that will formalise what has existed with us all the time.”
“You know police provide escort and guard for big corporations, banks, and so on. Now, in the interest of transparency and accountability, the government is formalising this relationship. And there will be an introduction of tariffs and billing schemes. This will be using PPP (public private partnership arrangement).
“The police projected the use of consultant that will help them to manage this. Part of the revenue will go to Federal Government. Part of it will go to the police. Part of it will go into police allowances. And part will go to consultants as their own fees.”
Shehu said council also approved contracts worth N754,048,161.25 for the Economic and Financial Crimes Commission’s (EFCC) capital projects.
He said: “These are mainly for the supply of communications at the Command and Control Centre. This is to enable EFCC comply with modern day investigative techniques, improve its operational efficiency, and support the administration of criminal justice system in the country.
“So, these are basically defensive and offensive cyber-security systems.”
The Minister of Water Resources also got additional cost for the ongoing work, especially for the consultancy in amount of N161,008,500.
This is an additional cost for the consultant who is supervising and managing Biu Mega Water Supply Project in Borno State.
He added that the overall cost has risen to N9, 361, 118, 756.25.
The Minister of Health, Dr. Osagie Enihare, announced that the council approved procurement contracts for his ministry worth about N8.6 billion.
Minister of Power, Mamman Sale, on his part, said his ministry presented three memos which were all approved.
“The second one is the construction of 150 33 132 33 1 by 60 substation at Obajana with line base extension at Lokoja in the sum of N259.9 million.
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