Umahi: FG inherited N15 trn debt from 2,600 road projects

By Chris Ochayi

ABUJA: The Minister of Works, Engr. David Umahi has said that the current administration inherited over 2,600 projects at the cost of over N15 trillion from the past government.

Umahi, who disclosed this while addressing reporters on Tuesday in Abuja, informed the contractors handling various projects for the ministry on the reason for the delay in their payments.

He said that in addition to the inherited projects, the government undertook 330 projects on emergency basis at a cost of N260 billion and that the projects have strained over 80 percent completion.

He therefore, ordered the Directors to commission all the completed projects because the president would not have the time to commission all of them.

He said, “I am directing all the directors to go round and commission them. Understand that we have a new situation. So, we have to adopt a new policy.

‘We will offer to the contractors not them offering to us. We appeal to you to understand our situation. When we came on board we were presented with certified contracts of N1.5 trillion. A lot of you have no equipment and you use delayed tactics to slow down the job.”

Given the paucity of funds , the government is recouping the projects to the effect that any contract that has two carriageways, one carriageway should be completed first and delivered before the other.

“Any contract that has two carriageways will no longer be completed at the time for easy payment” he said adding that the government is considering doing away with variation of price (VOP).

Any contract, he said costed at N1,700 per dollar does not attract any VOP but when the project has not been reviewed then it may attract VOP.

On the Lagos-Calabar Coastal Highway, Umahi noted that the government has so far paid almost N10 billion compensation.

The minister stressed further that, “We’ve paid the total compensation of close to N10 billion. The contractor is highly commended for very beautiful job and commitment and being very reasonable.

“Even when we changed alignments, he does not ask us to increase cost. Section three and four have been finalised, but we’re going to do stakeholders engagement later.

“But the design is almost completed. The government has given a matching order to start the design of Sokoto- Badagry Highway and it’s also going to be in six lanes with a train track by the side for future development.

“And people have been asking what is the economic value there. We have a lot of irrigation opportunities.

“We have a lot of agricultural lands. We have a lot of water for both irrigation and power. And it’s also a corridor for African trade routes. A lot of opportunities.’