19 Days to go: FEC approves N327.34b contracts

The Federal Executive Council (FEC) on Wednesday approved the award of several contracts worth N327.34b, with spill ravaged Ogoni community in the Niger Delta toping the list with N107 billion.

Garba Shehu, the senior special assistant to the President, on Media and Publicity, while briefing State House journalists after the Federal Executive Council meeting presided over by Vice President Yemi Osinbajo, described the Ogoni community as a major priority of the President Muhammadu Buhari administration.

He said: “You know Ogoni is one of the flagships of the Buhari administration. And you’re aware the whole world is watching Nigeria.

“There is water project that have been awarded under the second phase in Ogoniland amounting to N22.8 billion.”

He revealed that the Council granted approval for “contract for the remediation of the newly identified hydrocarbon impacted cites along the shorelines of Ogoniland, and this is for about N107 billion”.

According to him, “ The FCT also got quite a number of approvals. And these includes contract for the full scope development of the Shehu Shagari way, and it is for N91 billion. Another one is for rehabilitation of Rubochi township roads and upgrading of Rubochi-Gwagwada road about N5.7 billion”.

Other contracts approved by FEC include the N1.6 billion contract for the construction of 3.2km road leading to Kwali bridge in Kwali Area Council in the Federal Capital Territory (FCT), contract is for the revised estimated cost for the provision of engineering infrastructure at Guzape District plot II of the FCT and the contract sum is N28 billion.
A further breakdown of the projects approved by FEC show that the transportations sector got 12,639,770b; Sports N8.4 billion; the Aviation sector got N3.85b for the provision of facilities in 17 of the nation’s airports; and IRS building purchase in Abuja and Port Harcourt at the cost of N10 billion.

The Council also approved the establishment of the National Institute for Domestic Security at Irogbo-Ilesa, OSUN State, for which budgetary provision of N285 million was made in 2022 budget and N360 million in 2023 budget.
Transportation Minister, Mu’azu Sambo, while speaking on the several contracts approved by FEC, maintained that the administration will continue to perform its duties to May 28.

He said: “without any intentions of mischief, this government was elected to function from 2019 to precisely 29th of May 2023. Should we now stop functioning one month before the next appointment because we’re coming to the end of the tenure?

“This government must work. We expect the next government to also work until the very last day of their tenure.”

Similarly, Minister of Water Resources, Sulaiman Adamu, explained that contracted processes take time, adding that “even if the administration cannot finish what it has started, government being a continuum, it will be be the business of the incoming government.

He said: “If I may add, there are processes and this process have started. We’re still operating the 2022 budget, we have agencies. These things are not just done in one day. We had lots of submissions to BPP to ICRC, all the agencies involved in the procurement, and they have to get ready.

“So, anytime they’re ready, it’s at that point that we have to submit. And like the Minister of Transportation said, we’re still in office technically until the 28th of May.
So, we still have to operate. And this is the instruction that we have from Mr. President.

Sambo revealed that the Ministry of Transportation submitted three memoranda to council including memo for provision of security equipment for the Nigerian railway stations across the country phase two while the second one was for security equipment include baggage scanners walkthrough metal detectors, X-ray male scanners, liquid explosive detectors, narcotics cam trace bomb detectors, among others.

“It was awarded to Messrs Advonix Services Nigeria limited in the sum of N4.3bn naira with a completion period of 12 months.

“The second memorandum is also from the Nigerian Railway Corporation to provide a secure e-ticketing solution for the Lagos-Ibadan corridor and the Warri-Itakpe corridor under a design, finance, build, operate, maintain and transfer public-private partnership arrangement for the Nigerian railway cooperation.

“The Lagos Ibadan corridor was approved in favour of Messrs Global software digital solutions limited/Datamatics Global Services Limited for a concession period of 10 years at a sharing ratio of 81.5% to NRC and 18.5% to the concessionaire.

“The Warri-Itakpe corridor under the same partnership arrangement was approved for Messrs Fein international consult limited/Artificial Intelligence Technologies Limited for a conssession period of 10 years and the same sharing ratio.

“The third memorandum is in respect of our requests by the Nigerian Maritime Administration and Safety Agency to buy two buildings in Port Harcourt and Abuja to serve as a zonal office, as well as an Abuja Liaison Office respectively.
“That was granted by a council while for port harcourt houses the zonal headquarters of the agency to cover all the littoral states of Akwa Ibom, Bayelsa, Cross River and Rivers State because the Eastern zone actually has many ports, terminals and jetties under the purview of the agency.

“That again, was approved by council details of which are as follows. For the Port Harcourt building, it was purchased from Messrs integrated console Company Limited is a three storey building, and the sum of N4,186,533,750 inclusive of seven and a half percent VAT. While that of Abuja is a four storey building at plot number 622 Cadastral Zone CBD Abuja in favour of Messrs Avalon Intercontinental Nigeria limited in the sum of N4,473,000,236.255 all inclusive of all taxes.

“May I also say that these two expenditures were properly and adequately provided for in the NIMASA’s approved budget. So Council considered them and approved accordingly.”

The council also approved memoranda presented by the Ministry of Water Resources for the concession for the operation and maintenance of the proposed Gurara II 300MW hydro electric power project.

It will be financed by the China’s EXIM Bank loan along with 15% equity contribution by the contractor and 50% counterpart funding by the federal government.

The 30-year concession is expected to pay back between $800 and 900 million.