…Demonstrates its dedication to innovative and creative solutions that prioritizes road infrastructure needs of Nigerians.
As part of the strategic infrastructure development masterplan for the Renewed Hope administration of His Excellency, President Asiwaju Bola Ahmed Tinubu GCFR, the Federal Government has adopted workable measures to end the old order of unnecessary delays in the execution of road infrastructure projects by contractors and has taken steps to rejig the monstrous contract price variation clause, which has been a major clog in the wheel of progress, with regards to project execution over the years.
His Excellency Sen. Engr. Nweze David Umahi CON, made this known during a meeting with contractors handling Federal Government’s projects.
According to the Hon. Minister, “There is need for the urgency of thinking realistically, creatively, innovatively, and out of the box to overcome the funding challenges that face road infrastructure development in Nigeria”.
According to him, “When the Renewed Hope administration came on board on 29th May 2023, Mr. President inherited over 2,600 ongoing projects from the past administration amounting to over N15 trillion, out of which only about N2 trillion was certified and paid. And so we now have ongoing projects of N13 trillion, including budgetary projects, NNPCL, SUKUK, Presidential Initiative Development Projects, other Tax Credit Scheme Projects of NLNG, MTN, Dangote, BUA, Mainstream and projects under EPC +F, PPP. While stating that the aftermaths of fuel subsidy and the forex forces affected drastically the contract cost elements and pricing of which Variation on Price (VOP) could not provide a remedy especially for jobs awarded so many years ago, and where VOP on contracts was sometimes hitting 500%.
“In looking for a solution, the Ministry sought for and got Mr. President’s approval to give an envelope in the 2024 budgetary provision to keep all the inherited projects alive, believing that more funding of such projects could come by thinking outside the box. The new projects under the 2024 projects, including the constituency projects of the National Assembly, also have poor budgetary allocations” He said.
The Hon. Minister averred that in tackling responsibly, the challenges of funding, price variation, and delays in projects delivery, the he introduced responsive approaches which were adopted as the Ministry’s measures to overcome the challenges of road infrastructure development in Nigeria. Such measures include but are not limited to reviewing the VOP clause to ensure workability in line with the economic realities, making it a policy that all contractors handling two carriageway projects (with the exemption of the 3 legacy projects) must first complete one side of the two carriageways and thereafter continue with the second part subject to availability of fund, advancement of funds after award of contract is subject to conditions contained in the bid document, going forward. Other measures adopted were that contractors must have a timeline for project delivery, and every contractor shall have a duty to maintain the road under construction until the entire project is completed and delivered. A deadline shall be given for all ongoing projects, and with time, all projects that have no funding shall be stood down, but projects will be selected zone by zone or State by State for funding. In applying these measures, he emphasized that all contractors will be treated equally.
“Our policy is that no contractor in the Ministry of Works will be treated differently. Whether you’re an indigenous contractor or you’re a foreign contractor, as long as you can turn cement to the right grade and place it rightly, and we check, and it’s good, you’re a good contractor.”
While noting various projects completed by contractors and other major ones to be ready for commissioning from July, 2024, The Honourable Minister noted and directed the Directors in charge of each Geo-Political Zone to officially and publicly commission the various projects completed in their respective Zones.
He further directed that committees made up of the Ministry’s Engineers and Media correspondents be set up to pay inspection visits to the respective zones to assess the level of project performance in all the Federal Government projects being handled by the Federal Ministry of Works under the Renewed Hope administration.u
