FG Inherited N14.1trn Debt on Road Construction – Umahi

…N431bn ready for contractors

By Seun Adams

The Minister of Works, Engr. Dave Umahi on Thursday said contractors across the country are being owed N14.1 trillion even as the present administration has 18,000 km of road to handle.

He added that the government is paying N4 trillion to contractors for roads constructed in the last 20 years.

Umahi also announced the Ministry’s  intention to focus on  most of the dualised  roads across the  country. 

Addressing contractors from across the nation in Abuja, the Minister said: “Why we are here now is to announce our intention to face most of the dualised roads in the country.”

The Minister made this remarks while meeting with all contractors handling road dualisation projects and all zonal Directors of the Ministry at the Ministry’s HQter’s office  in Abuja on Thursday.

“I want to remind you that  Nigerian National Petroleum Corporation (NNPC) is funding 50% of the contract sum and that funding goes up to 2025.

“We have N431 billion ready for contractors to clear but there is no certificate for it, if you are doing a job under Phase 1, make effort to make claims, if your job involves augmentation go back to your Regional Director for understanding before I sign the certificate, any certificate I sign now, I have to take account for it even when I have left office.” Umahi said.

The Minister however tasked the contractors to stick to one lane if their job has not gone up to 50% completion.

On plans to come up with Performance Bond, he said it means that all new projects would be guaranteed for 10 years.

He urged all contractors that have built roads that cannot last up to 10 years to write to the Ministry to either stop work or rebuild the road to last 10years.

He warned  contractors that he would not listen to stories of failures on the roads due to  overloading, he enjoined all the contractors to cooperate with him on building roads with concrete technology as it was done both in India and Singapore.

Umahi urged the contractors and stakeholders to key into President Bola Tinubu’s Renewed Hope Agenda, adding that the administration has 18, 000 kilometre of roads and inherited a contract sum of about N14.1 trillion and out of which N4 trillion is being paid in all those projects some of the projects have lasted between 10 to 20 years.

He accused some contractors of jerking up contractor sum by 100% and that is the reason they are not getting paid.

“We are going back to the original concept of the projects and the necessity of any additional works and also see how we get a fair deal, expecting an endorsement from the Ministry of what is not acceptable to Nigerian Society of Engineers is not possible.

“Mr President understands road  infrastructure,  If I come before him  with a contract of N44 billion  reviewed to N144 billion contract sum, I must be able to provide details of how the cost came about.“

Related posts

FG’s YOUNG AND SECURE PROJECT: MINISTERS GEAR-UP TO SPARK TINUBU’s RENEWED HOPE AGENDA

FG, UNODC TO COLLABORATE FOR CORRECTIONAL SERVICE REFORM 

2030 DIGITAL LITERACY TARGET: NITDA SET TO CASCADE TECHNOLOGIES TO 774 LGAs