Omobolanle Shosanya
The Minister of Works, Sen. David Umahi,has disclosed that the funding gap to complete all the inherited projects by the Bola Ahmed Tinubu administration is about N13 trillion as at May, 2023.
He estimated that this will even be more than N16 trillion when all projects are reviewed in line with current market realities.
He disclosed this, on Thursday, at the Ministry’s headquarters, Mabushi, Abuja during a press briefing to mark one year in office.
According to him,his presentation highlights the status of the road and bridge projects being executed by the Federal Ministry of Works at the commencement of this administration in May, 2023 and a report on the achievements the ministry has made up to date, pursuant to the Renewed Hope Mandate of President Tinubu and how it is impacting on the socio-economic development of Nigeria.
He added:”The present administration inherited a total of 18,932.50Km of ongoing projects with a total of 2,064 number of contracts.
“The total value of all the ongoing projects as at May, 2023 was ₦14,424,982,425,616.40. Amount certified was , ₦4,734,849,328,306.77, amount paid was N3,122,628,914,427.12 and amount owed contractors for certified works was ₦1,612,220,413,879.65.
“The funding gap to complete all the inherited projects is about ₦13trillion as at May, 2023 and will be more than N16 trillion Naira when all projects are reviewed in line with current market realities.”
Due to the removal of fuel subsidy and the floating of the Naira, Umahi noted that, though it is a very sound economic decision of this administration, and considering the fact that some of the projects have lingered between five to 18 years, consequently, the projects are being reviewed to match with current market realities.
This position, he said excluded all the new projects under the Renewed Hope Agenda and the four Legacy projects.
Speaking on the new policies of the Ministry of Works to advance road infrastructural development across the country, Sen. Umahi further stated that, “The Ministry has come up with new policies to mitigate the poor pace of works and improve the service life of Federal Roads.”
Some of these policies, he said include “Introduction of construction of Rigid Pavements(Continuously Reinforced Concrete Pavement) as against the Flexible. Pavement (Bituminous), where appropriate, especially where there is high water levels and poor soilstructure.
“Reduction of the claims for Variation of Price (VOP) by Contractors, which has, consequently, saved government money and reduced the incessant request for augmentation of project contracts. Removal of Consumer Price Index (CPI) from all contracts, thereby giving the government value for money spent on the projects.
“Introduction of Uniform Pricing in each zone to ensure fair rates are utilized for procurement of projects. Enhance supervision of all on-going projects, which requires all field staffsto be on site. Introduction of Whistle Blowing on bad jobs by engaging stakeholders such as communities where the projects traverse, road users etc to monitor works executed and report where poor quality works are being executed.
“Engaging in priority projects within economic corridors whose early completion will spur economic growth. Engaging in the completion of one carriageway before commencing the second carriageway for dualized projects. Sending Regional Directors/Special Projects Directors to the fields/sites to supervise project execution as well as ensure quality and timely project completion.”
He noted that the successful implementation of the Renewed Hope Agenda, in the road sector requires effective collaboration between the Federal, State, and Local governments, as well as private sector stakeholders.
He said the focus on maintenance and rehabilitation will ensure that the road projects are sustainable, reducing the need for costly repairs and ensuring that the benefits are long-lasting.
He added that,the President Tinubu’s Renewed Hope Agenda in the road sector has the potential to transform Nigeria’sinfrastructure, stimulate economic growth as well as improve the lives of the citizen.