FEDERAL MINISTRY OF WORKS GIVES ULTIMATUM TO CONTRACTORS HANDLING THE DUALIZATION  OF LOKOJA-BENIN ROAD,  OBAJANA  JUNCTION- BENIN IN KOGI AND EDO STATES TO SIGN THE REVIEWED CONTRACT OR FACE JOB TERMINATION - AS HON MINISTER DIRECTS THE MINISTRY TO WITHIN 7 DAYS  AUDIT ALL  ONGOING  PROJECTS, INCLUDING PERSONNEL  AND EQUIPMENT The Honourable Minister  of Works, His Excellency,  Sen. Engr. Dr. Nweze David Umahi CON has directed  the   contractors handling  sections I- IV of Lokoja- Benin, Obajana Junction- Benin roads in Kogi and Edo States to immediately  sign the new contract  as reviewed under the Renewed Hope administration  of  President Asiwaju Bola Ahmed Tinubu GCFR or face the termination of their job by the Federal Ministry of Works in accordance with the condition of service.  This directive was given to the contractors  in a meeting  with the  representatives of  Mothercat  Ltd, CCECC Ltd, Dantata & Sawoe Ltd, CGC Ltd and RCC Ltd held on 25th April 2024  at the Ministry's Headquarters, Mabushi-Abuja.  He further directed  the Ministry  to, within  7 days , carry out a comprehensive audit of the ongoing  projects with a view to  knowing  the  status of work done, the capacity  of personnel  and equipment being used by the contractors. Speaking  during the meeting, the Honourable  Minister frowned at the pranks of the contractors who were part of the process of re-scoping and reviewing the contract specifications but failed to sign the review  contract  documents after signing that they would do the job based on the new specification.  He said “The project was initially N121 billion, but before the administration of President Ahmed Bola Tinubu, the project was already reviewed to about over N870 billion.  When I came in as Minister, I saw that the project was over-bloated, and I refused to take the No Objection to FEC. I had to go through the road  myself, and I realized that some sections of the road could not survive asphalt.  So, we started meetings that took us over five months with all the contractors, and in the meetings, we agreed to re-scope the project. We re-scoped the project where we said okay, the new lanes should be done on concrete and the other ones done on asphalt.  We kept the contracts up and we all signed the documents and based on signing the documents, we took it to BPP and from BPP we went to FEC, and before we went to FEC, we demanded for them to approve that they can do the job.  They all gave us letters of approval.” He  wondered  why  contractors were given jobs without having the required manpower and equipment to do the job, and warned that henceforth any contractor signing a contract must sign alongside the basic rate and timeline.  He said,” So the position of the government is that if you are not signing the contracts between today and tomorrow, you will forgo the jobs. You can go to court. We will not enter into any condition for further negotiation.  This contract is over N2 billion per kilometer. You don't have equipment to do the work. Let me even assure you that if you are signing the contract, you will sign it alongside the basic rates. You sign it alongside the timetable, and you deploy in three sections, or I will terminate the job. Enough of playing with the psyche of the people."  He further stated that the Ministry would  not allow  any contractor  to hold the country to ransom or to impose their conditions  on the Ministry. "You don't want to work, leave the job. It's not compulsory that you must be the one to do the job. You cannot be on site, and the people are dying. The vehicles are falling down, and you're playing politics with the lives of the people. And we fold our hands and leave you for what? You can't be on site....So if you are not working, pack your things out of that site." In his remarks,  the Director,  Highways (SP) South, Engr. C.A Ogbuagu  gave account  of  the  technical processes undertaken by the Ministry before  Federal  Executive Council approved the  augmentation of the  project,  which the contractors accepted,  and letters of award were given to them. He wondered why the contractors refused  to sign the new document. He said," After the FEC's approval of the argumentation, the legal department was brought in so that this new contract will now be executed so that work will continue on site. So, for about two weeks now, the draft addendum has been with the contractors, and none of them has positively responded, except  RCC." The CGC in his reply, expressed commitment to the directive of the Hon. Minister and said, "for our side, and firstly for our section, and currently we are seriously working.  And secondly, we have a sent the draft to the Head Office And there is any issue, we have answered them and may be later tomorrow morning, we can get the approval from them so we can go ahead."  It is hoped that the other contractors will sign the new contract latest Monday 29th April, 2024. and mobilize effectively to the site.   ...

BODO-BONNY ROAD:  FG ORDERS JULIUS BERGER TO RETURN TO SITE WITHIN 14 DAYS OR FACE SANCTIONS The Federal government has ordered the contractor handling the Bodo- Bonny road construction to return to site within 14 days or risk appropriate sanctions. Works Minister, His Excellency, Distinguished Sen. Engr. (Dr) David  Umahi gave the marching order today at a meeting with the handlers of the road project, Julius Berger  PLC , as well as representatives of Nigeria Liquefied Natural Gas NLNG and Royal Fathers from Bonny Kingdom  and  other members of host  communities in Abuja. According to the Minister, the Bonny-Bodo road contract which was initially awarded at the cost of N120 billion in 2015, was later varied at N199 billion with a completion dateline of December 2023, which has since elapsed. The Minister deplored the unilateral stoppage of work by Julius’ Berger, describing the action as unacceptable. While rejecting in total, Julius Berger’s request for variation based on fluctuations in exchange rate and increasing cost of material, the Minister said government does not award contract based on exchange rate. He pointed out that no contractor will come to government for a downward review of the cost of any project if the exchange rate becomes one naira to one dollar, adding that government cannot anchor contract cost based on exchange rates variations. Senator Umahi was particularly unhappy that the timelines for the completion of the project were not adhered to, maintaining that if the project were  completed in December 2023,   as contained in the contract agreement , issues  of high exchange rate and increasing cost of materials would not have arisen ‘ He however promised that he would make a presentation to Mr President and commander in Chief His Excellency Bola Ahmed Tinubu for a marginal augmentation to ensure that the project is completed on or before December 2024, particularly in the Spirit of the Renewed Hope Agenda and the love President Tinubu has for Bonny Kingdom and other host communities in the Niger Delta Region. Earlier in his presentation, the Managing Director, Julius Berger Plc    Engr Dr. Lars Richter called for the variation of the contract which he said has become necessary in view of the declining value of  the Naira and rising cost of construction materials in the country. The Managing Director drew the attention of the Minister to the time lag when the contract was awarded in 2015 when the exchange rate was N305 to a dollar, adding that the cost of building materials has since risen by over 1000%. Contributing, the Deputy Managing Director of NLNG, Olakunle Osobu pointed out that the contract which is being funded through the Tax Credit Scheme is intended to complement the Renewed Hope Agenda of the current administration, calling on all parties to the project to remain patriotic as well as make the necessary sacrifices for the actualisation of the project.     On their part, Roya Fathers of Host Communities led by Chief Abel Attoni, Palace Secretary, Bonny Kingdom expressed profound gratitude to President Bola Ahmed Tinubu over the decision of the Renewed Hope administration to ensure that Bodo-Bonny road is completed. His Royal majesty applauded the commitment of the Works Minister to the road project especially coming at a time the Nation is experiencing economic difficulties. ...

Those Criticizing the Ongoing Lagos- Calabar Coastal Highway Project Being  Done by  The Renewed Hope Administration Of President Asiwaju Bola Ahmed Tinubu  Either Have Little Knowledge of the Concept of EPC+F On Project Financing Or  Are Deliberately Sacrificing The Cause Of  Development  At The Altar Of Politics The trending posts of   criticisms by some notable  politicians on the propriety and priority of the Lagos-Calabar coastal highway project being executed  by the Renewed  Hope administration  of His Excellency President Asiwaju Bola Ahmed Tinubu GCFR are no doubt baseless thoughts of critics who are either bereft of the knowledge of the workings of the project  initiative or they deliberately  want to sacrifice the modest developmental efforts  of Mr. President  at the altar of  their political ambitions. It is unthinkable  that such highly  placed people fail to understand  the various  elucidations provided  by the Honourable Minister  of Works,  His Excellency,  Sen Engr Nweze David Umahi CON  on when the project  was conceptualized, the various  administrations that attempted   but failed to carry out the project, the economic  and technical  considerations that gave rise to the commencement  of the project under the Renewed Hope administration, the funding  and procurement details  and indeed the dimensions, importance, priority and propriety of the projects  in the national developmental trajectory. For the avoidance  of doubt,  the Lagos- Calabar coastal highway  project is being done under EPC +F. What does this type of funding  entail? This is a project financing mechanism in which EPC+F contractors also arrange financing for the project. EPC+F is Engineering, Procurement  and Construction plus Financing. Engineering  here includes design and specification. This initiative provides  a fixed  price, fixed date, and transfers risks to the contractor. This type of funding requires only a counter- part funding  from the Federal Government. Such funds  are sourced  by contractors where they have confidence  in the  economic policies of government, which essentially entails  allowing  the participation of the private  sector  in the road infrastructure  development through  PPP or EPC+F.   In the recent  Inauguration  of the Committee  on Compensation  of owners of properties that will be affected  by section 1 of the Lagos- Calabar Coastal Highway, the Honourable Minister emphasized the nature of the project funding  and the workings of EPC + F when he said, "And graciously, Mr. President had approved that this section three will start from Calabar, which is the end point of the project, and start running towards Akwa Ibom. So, the 700 km is procured  under phase one, in phases, and it's EPC +F. EPC+F is engineering, procurement, construction, and finance. And so, under this kind of arrangement, the contractor is expected to bring in a certain amount of money, and Federal Government is expected to pay certain counterpart funding." No patriotic  Nigerian  should discourage  this kind of project  where funding is substantially  from the contractor. There is no doubt  that Mr. President  is aggressively  tackling  the backlogs  of uncompleted  road projects. In the 2023  Supplementary Budget,  Mr. President  approved funds for intervention on the over 260 dilapidated roads nationwide.  The 2024 appropriation  made provision for capital  investment  on our critical  roads across  the 6 Geo- political  zones of Nigeria. The Honourable Minister  has already  made a great difference  in the road infrastructure development  roadmap of this administration through his new innovations on road construction  and rehabilitation, his power of supervision, and his contract negotiation power which  is second  to none in the history  of the Federal Ministry of Works. He has been touring around and supervising   the various  ongoing  projects  of the  federal government, and the difference  is already  there. The people  are testifying of the quality  and speed of road projects being  executed by the Renewed Hope administration. He has proven track records on road  infrastructure development.  He is not into rhetorics like many politicians who talk high but can do only less. The administration of President  Tinubu  is doing roads that will stand the test of time. The  roads he is fixing  will  facilitate economic  recovery.  The patriotic  Nigerians are already  applauding  the good efforts of Mr. Presidentt, but professional  politicians  are busy criticizing  a landmark  project  that will launch Nigeria into the league  of the best economies of the continent.  On the importance  of the Lagos-Calabar coastal highway project  to the economy  of the  nation, it is clear that the coastal highway, when completed, will foster national economic growth. Notably,  all roads in the country are  important as reflected by the interventions of this administration on road rehabilitation across the nation, but the coastal highway offers much more economic benefits to the nation because  of its connectivity  to the North  and South through  the existing spurs. The road, when completed, has the potential to increase Nigeria’s GDP and trigger industrialisation, create trade, enhance the  transportation  of goods and services, and  safety of road users.The road is going to be the biggest super highway in Africa in terms of the structure and solidity as we all as utility value, having ten lanes with a rail track designed for concrete technology, covering 700 kilometers. It is going to attract foreign direct  investment to Nigeria, and it is going to trigger economic development. It is going to develop the potential of our coastal businesses, especially  at the local economic corridors, and boost tourism and marine businesses.  ...