DailyrecordNg …Nigeria's hottest news blog
Related Articles
The Engineering, Procurement, Construction and Financing (EPC+F) contractor, High Tech Construction African Limited that was awarded the 700-kilometre coastal highway has failed to raise the needed funds for the construction of the project, according to the Minister of Works, Dave Umahi.
Umahi said the development led to the withdrawal of the agreement and sourcing the funds from the government to fast-track the project.
The minister said this after the Council met at the State House, Abuja.
According to him, the Federal Executive Council has approved a contract of N1.067trn for the construction of the first phase of the coastal highway.
The first phase is a 47.47km dual carriageway that has five lanes on each side and a train track in the middle.
The 700km road cuts across nine states, with two leading up north.
“Today, we had the approval of FEC for the construction of 700km of coastal routes running from Lagos through the nine coastal routes or states up to cross river, meaning that it goes to Lagos, the Lekki Deep Seaport, Ogun, Ondo, Delta, Bayelsa, Rivers and Akwa Ibom.
“But we also have two spurs that lead to the north, from the ongoing Badagry-Sokoto route and the one that leads to the Trans-Sahara route that goes from Ogoja down to Cameroon. Now, it is a dual carriage way and each carriage way has five lanes and a provision for a train infrastructure that will be in the middle.”
The minister explained that FEC had earlier approved the project to be procured under EPC+F (Engineering, Procurement, Construction and Financing) but the contractor, High Tech Construction African limited, could not get the required funds.
Umahi said, “So, the ministry went back to Mr. President to ask for two things: We asked ‘can we fast track this?’
“Since this project was going to be procured in two phases and multiple sections, can we get the federal government to fund the phase one, which is what is 47.47km running from Ahmadu Bello in Lagos down to Lekki Deep Seaport? Mr. President graciously approved.
“Today, we have procured the first section, which is 47.47km, under 10 lanes, and FEC graciously approved the contract for N1.067tn with no objection. FEC also approved that the second section be procured, to be funded by federal government, which is about 57km and that runs from Lekki Deep Seaport to the boundary between Ogun and that section two of phase one.
“Then the third section is to start from the end of the road, which is Calabar and so that’s about 50 kilometers, and it’s procured under section three of phase one, and is running from Calabar and going towards Akwa Ibom and towards Port Harcourt.
“Then the other sections and other places will still be under EPC+F in favour of High Tech Construction Africa Limited. But let me also announce that the road is going to be constructed with concrete and they are masters in that.”
Umahi also lamented the impact of inflation on the cost of construction. He said the cost of asphalt particularly has risen by over 1,400 per cent between 2006 when some contracts were awarded to date.
He said, “The prices of construction materials, like in 2006 we should be expecting asphalt to cost about N2000 per meter square, and today’s cost is between N27,000 and N30,000 per meter square.
“The same thing goes with diesel; the same thing goes with cement. And so, some of these projects are stuck.
“One of such that lifted today was the dualisation of Kano-Maiduguri road, section four, Damaturu-Maiduguri, it was awarded in 2006. And it has stopped because the contracts can no longer carry it. But today has been argumented from N39bn.”
