Benin-Auchi-Okene Road. Credit: Guardian
* Reassures of FG commitment
By Kingsley Abavo, Benin
The Federal Government is still very commited to the completion of the lingering re-construction of the Benin-Okene Express Roads; which contract was first awarded, about 15 years ago.
Also, the re-construction of the Benin-Warri Express Road which has turned a nightmare to users for several years now.
The immediate past Minister of State, National budget and Planning, Clem Agba gave the re-assurance while responding to Journalists’ probing when he visited the Nigeria Union of Journalists (NUJ), Edo State Council on Thursday, 8 June, 2023.
He also explained the realities of the situation with the two vital Federal highway; assuring work would begin soon.
Describing the Benin-Okene Express Road as critical, Agba explained that there are several factors impeding the smooth running of work which he said include inadequate budget and funding.
“There are four sections on that road with separate contractors handling each; even as its contract has been on for about 15 years with the main problem being finance.
“You know there is time value for money; every year, that something is not done inflation and other factors push up the cost.
“What we have tried to do in the last three years was to push for SUKUK funding hence significant amount of work has been done from the Benin end; and also around the Ewu Junction where we are trying to do an over pass and when you go towards the Iyamho, Okpekpe sections a lot of work has also been done but between Okpilla and Okene, nothing much has been done and towards Obajana, some works also have been done.”
Agba lamented budgets were not sufficiently funded; because one thing was for the Ministry of Works to say they were putting N5bn, N10b or N30bn when it was going to the National Assembly, but what would come back was usually different.
“That is why second funding mechanism was set up for the second Niger bridge that made it to be completed on time; the same thing for the Lagos-Ibadan, Kano-Kaduna Express Roads.
“So we thought that we should look for a special funding mechanism for this road.
“So I was able to work with my colleague in the Ministry of Works; work with the Chairman, Federal In-land revenue services and we agreed to a tax credit funding system on the road.
“I was able to secure the sum of N75bn for the four sections of the road and additional N10bn in the 2023 budget for two sections; that is N5bn for each of the sections and that has since been approved by the Federal Executive Council.
“However, these are old contracts; the contractors refused to go back to site until their contracts were augmented. The augmentation means the contract value is raised to reflect the present day reality.
“And the procedure; once there is a difference of above 15 percent, the Ministry of Works will have to write to the Persident to bring it to the Federal Executive Council (FEC) for aproval. It was in January that the N75bn tax credit was approved.
“I kept on following the Federal Ministry of Works to know what is happening; and I was told a letter has been written to Mr. Persident to get that augmentation.
“You will recall that within the last three months of the last administration, Mr. Persident was engaged in a lot of international travels in a way of bidding farewell to countries so attention was not really given to the letter from the Federal Ministry of Works.
“However, it was in the second week of May I was able to trace that particular letter to the Chief of Staff through the Minister of finance saying how sustenable was that funding; Mr. Persident wanted to know before he gave that approval to make that letter come to the Federal Executive Council.
“Of course that letter was written in early February but I didn’t see it until some time in May.
“Of course I am a Minister in that Ministry so I gave the response even though myself, I was also not in the country; I had to sign it eletronically and sent it back to the office of the Chief of Staff but unfortunately, we didn’t have the time to bring it to the FEC before we exited.
“But Government is a continuum so, it will still have to go to the FEC so that the approval will be given; approval of the new rates because the contractors have refused to go to site until the old rates are reviewed upward.”
FG already approves contract for Benin-Warri road at N290bn
Agba disclosed that the contract for the re-construction of the Benin-Warri Express Road had been approved by the Federal Government at the rate of N290bn, before the administration of Muhammadu Buhari ended.
The road is divided into three segments and allocated to three different contractors for expansion and dualization he added; but did not disclose the names of the contractors.
“There is also the Benin to Warri express road which was also approved; that is a green field; there was no existing contract so it was much easier.
“That road is divided into three segments; and the contract have been awarded to three different contractors for expansion of the road; and it has to be dualized and I think we have a total of N290bn to take care of the three segments of that road.
“The FEC has approved, and the contracts have been put in place. So, both the Benin-Okene and Benin-Warri Express Roads will be dealt with.”
Laments twisty procurement procedure for delay of contracts execution
The immediate past Minister blames delay of contracts execution also on the procurement procedure, which he said was complex, yet it was mandatory to be followed to the letter.
“You see, Government has a procedure to follow, it is not like an individual thing; you put hand in your pocket and you pay. And if those procedures are not followed, the media will be the first to raise an eye brow.
“I am one who have always said our procurement procedure should be changed because the way it is; it creates a lot of distortions and it elongates the entire procurement procedure, within a year it makes it so difficult to even implement the budget.
“In Chevron when I was procurement manager, I could sign N600m and auditors can come audit and I explain what I have done but with this system; it takes more than ninè or ten months because of the way the law is structured for you to be able to make a commitment.
“It is because we don’t trust ourselves; anybody in Government is a criminal, a thief; others outside are angels but those in Government are chosen from those angels outside.
“This is why some of these laws have been put in place but they are creating a lot of problems for our people.”
About Author
