Federal Executive Council (FEC) on Wednesday approved contract for the design of new office complex of Departments of Petroleum Resources (DPR) at the cost of N1.4 billion.
The new building already has land allocated for it in Abuja as the DPR begin moves to relocate from Lagos to Abuja, according to the Minister of State for Petroleum, Ibe Kachikwu.
The minister, while briefing State House Correspondents after the weekly FEC meeting presided over by President Muhammadu Buhari, said, “Contract was awarded to Messers Arteck Practice Limited to design a 12-floor building at a plot, which has already been allocated to by the FCT.
“They are currently based in Lagos and are the regulatory and supervisory arm of the Ministry of Petroleum, and is instrumental in terms of income generation. It will enable DPR move to Abuja.”
Kachikwu revealed that the contract was awarded to DPR tenders board, with the lowest bid, adding, “The highest bid was about N3 billion, even as the projected potential cost of the building is fixed at about N35 billion, when finally completed.
“So, if you look at that as a percentage of the work, it is absolutely insignificant, in international terms it is very justifiable, it is less than 2 percent.
“The FCT did mention in our deliberation that because of the new zoning policies, the previous plan which was to build a car park of another five floors along with the 12 floors have to be changed a little bit because they are taking possession of additional green area that were assigned to them.
“So, they will build a lot of parking institute within the building. I think because of the amount of work to be done and in line with international practice, it is quite frankly very reasonable.
“Let me also say that part of the programmes we have pursued in the ministry, is how to get a lot of our parastatals to become independent and self financially generating agency and so get out of federal budget.
“So, a lot of funding for this development is going to come out of DPR itself not out of federal budgeting.
“The plan is that if we continue the way we are doing, a lot of federal agencies will be out of federal budgeting and be self reliant. Be it PPPRA, DPR, PEF, that is the game plan. So far, we have exited NCMB and we are near existing DPR and then PEF.”
Minister of Trade and Investment, Okechukwu Enelamah, speaking of the Government Enterprise and Empowerment Programme (GEEP), said FEC approved the appointment of a contract for consultancy services as part of the government social investment programs of the Federal government.
Enelamah GEEP got an approval from the FEC to award a contract to engage a programme management office consultant and system provider, for the GEEP at the cost of N1.556 billion.
He explained that the contract, which is for providing services for 4.6 million people, was viable, as GEEP had already provided credit for over 1.5 million Nigerians.
FEC also approved the establishment of a Committee to come up with alternative ways to add to what government is doing in financing infrastructure.
The Committee made up of Ministers also has representatives of ICRC, NSIA, Africa Finance Corporation and some private sector players to serve in the committee.
The Committee has Minister of Trade and investment, as chairman, while Minister of Finance, Minister of Power, Works and Housing, Minister of Budget and National Planning, Minister Transportation, Minister of Water Resources and Minister of State for Aviation, will serve as members.
According to him, “Target is to achieve between $10 billion to $20 billion infrastructure spending per year over the next 5-10 years range.
“Obviously, government cannot do it alone and will like to partner others and it expected to be done as part of the concluding work of this administration.”
The report is expected to be submitted within the next one month. Minister of Information, Lai Mohammed said FEC approved the sum of N23m for Cameras, Mics and other equipment as part of plans to upgrade broadcast facilities at the Nigeria Television Authority, NTA
This is just as FEC also approved 15 Peugeot vehicles for the News Agency of Nigeria NAN vehicles for operational purposes at the cost N148m.
He disclosed that the Federal Radio Corporation of Nigeria (FRCN) also got approval to purchase 12 transmitters at N562m and outdoor broadcasting vans at the cost of N312m, bringing the total amount to N874m.
