• Wednesday, April 17, 2024
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BusinessDay

FEC gives BUA nod to fund N115.4bn road project

FEC rearward part of Abuja-Lokoja road contract for N56.175bn

The Federal Executive Council (FEC) on Wednesday, approved a contract for the construction of the 131.4 kilometres Kano- Kazaure Kukula Highway, from a single carriageway to a dual carriageway, to be funded by BUA International Limited, under the Infrastructure for Tax Credit scheme.

Minister of Works and Housing, Babatunde Fashola disclosed this while briefing State House journalists after the weekly meeting presided over by President Muhammadu Buhari, in Abuja.

The contract which was awarded to BUA International Limited will be executed by Messers PW construction Nigeria limited, a company in which they have acquired some interest.

The Federal Government opted for the Infrastructure for Tax Credit system in which institutions with strong financial standings fund infrastructure projects in return for tax rebates, following revenue challenges

The proposed project which is estimated to cost N115,425,896,973.15 is expected to be completed in 48 months.

“The instructive thing is that the financing will be done by the tax credit scheme of BUA International Limited and they will use Messers PW construction Nigeria Limited, a company in which they have acquired some interest to undertake the construction”

The council equally approved the “Energy Transition Plan for Nigeria”, a plan that will help the country implement policies to achieve net-zero carbon emission.

Minister of environment, Sharon Ikeazor said the council also approved the Waste Battery Management Policy for Nigeria. The policy will create jobs in the economy and at the same time, protect the health of Nigerians from hazardous waste from batteries

Ikeazor noted that the policy will guarantee that batteries are disposed of based on regulations as well as recycled in Nigeria.

The council similarly approved the award of contracts and consultancies services in the construction of the corporate headquarters of the National Health Insurance Scheme in Abuja.

“This is because of the need to expand what is on the ground to improve the operational efficiency of that agency. And happily, the council considered the memo and approved the same.

Minister of transport, Rotimi Amaechi, said FEC approved a concession agreement for Onitsha River Port to a company called Universal Eligion that will manage the River Port for 30 years.

The council also approved a contract for consultancy services for supervision of the various railway projects in the ministry. The approvals affect the three railway projects that are yet to start: Port Harcourt-Maiduguri, Kano-Maradi, as well as Abuja-Warri.

“Now, for the consultancy services, the following contractors were approved with the total cost of $187.7 million”

He disclosed that GE Engineers Infrastructure Excellence/Yaro son and partnership limited, Core Consulting Engineering plc, was approved as Consultants for the Abuja-Warri.

“The consultants’ services for supervision of Port Harcourt-Maiduguri with batch lines to Bonny Deepsea Port and Port Harcourt industrial park, and then to Owerri, include Gary consults SDBHD/Jabu Global Services Limited at $97.5 million.

“The first one is $38.4 million. Then the last one is consultancy services for the supervision of the Kano-Katsina-Dibia-Maradi rail line, to Techniques Engineering, Architecture Marketing Nigeria Limited and that is for $47,670 million, all of them for a period of 36 months.