Oredola Adeola|
The Federal Executive Council (FEC) has approved additional N15.765 billion for Suleja-Minna-Lambata road and Ibadan-Lagere-Ilesa bypass. This was disclosed by Mr Babatunde Fashola, Minister of Works and Housing,while briefing pressmen at the end of the FEC meeting, chaired by President Muhammadu Buhari.
Recall that at the September 26, FEC meeting presided over by Vice President Yemi Osinbajo, the Council initially approved N79.8billion for the Ibadan- Ilesha –Ife dual carriageway.It was a single length highway until it was awarded in 2013 by the previous administration in phase one.
The road project which was inherited from the former President, Goodluck Jonathan's administration , was expanded into a dual carriageway by the President Buhari's administration.
According to him, the former Lagos State Governor the Council approved the upward review of the road contracts from the initial rates.
He said, FEC approved additional N3.165 billion for the Ibadan-Lagere-Ilesa bypass, while the 101-kilometre Suleja-Minna-Lambata road, got an additional N12.6 billion.
Fashola further said, "The first one is the Ibadan-Ilesa bypass 22-kilometre road. The contract was awarded in 2010, but there was no budgetary provision. The rates have become obsolete and the contractor wants a new rate.
“So, that has necessitated a revision of the rates by N3.165 billion. That means the old contract price of N6.7 billion has now moved to N9.8 billion.
“The same is true of the Suleja/Minna/Lambata Road. The entire road is 101 kilometres and it was awarded in two phases.
“The first phase was awarded in 2010 for 40 kilometres. The second phase, covering Kilometre 40 to 101, was awarded in March 2015, but they used the 2010 rates.
“The contractor is at a point where he says those rates are not sustainable. He can’t continue and we have recommended that the revised rates are considered and the Council approved them. It’s a revision by addition of N12.6 billion. So, the contract price moves from N23.6 billion N36.2 billion.
“It is important to emphasise that all of these are in keeping first with the desire and determination to focus on projects that can be completed rather than just starting new projects.
“Also, it is consistent with the realities of economic rates, market price indices for road inputs like cement, iron rods, diesel, petrol, lubricant and the changes that have taken place in the national economic stage between 2010 and now.”
The road project which was inherited from the former President, Goodluck Jonathan's administration , was expanded into a dual carriageway by the President Buhari's administration.
According to him, the former Lagos State Governor the Council approved the upward review of the road contracts from the initial rates.
He said, FEC approved additional N3.165 billion for the Ibadan-Lagere-Ilesa bypass, while the 101-kilometre Suleja-Minna-Lambata road, got an additional N12.6 billion.
Fashola further said, "The first one is the Ibadan-Ilesa bypass 22-kilometre road. The contract was awarded in 2010, but there was no budgetary provision. The rates have become obsolete and the contractor wants a new rate.
“So, that has necessitated a revision of the rates by N3.165 billion. That means the old contract price of N6.7 billion has now moved to N9.8 billion.
“The same is true of the Suleja/Minna/Lambata Road. The entire road is 101 kilometres and it was awarded in two phases.
“The first phase was awarded in 2010 for 40 kilometres. The second phase, covering Kilometre 40 to 101, was awarded in March 2015, but they used the 2010 rates.
“The contractor is at a point where he says those rates are not sustainable. He can’t continue and we have recommended that the revised rates are considered and the Council approved them. It’s a revision by addition of N12.6 billion. So, the contract price moves from N23.6 billion N36.2 billion.
“It is important to emphasise that all of these are in keeping first with the desire and determination to focus on projects that can be completed rather than just starting new projects.
“Also, it is consistent with the realities of economic rates, market price indices for road inputs like cement, iron rods, diesel, petrol, lubricant and the changes that have taken place in the national economic stage between 2010 and now.”
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