UMAHI BERATE CONTRACTORS, MOVES TO TACKLE PROJECT DELAYS ..... Says Government Is Determined To Meet Infrastructure Needs Of Nigerians

Engr David Umahi
Minister of Works

.... Expressed the urgency of thinking realistically, creatively, innovatively, and thinking out of the square to overcome the funding challenges that face road infrastructure development in Nigeria.

...... Directes that committees made up of the Ministry's Engineers and the Media correspondents be set up to pay inspection visits to the respective zones to assess the level of project performance in all the Federal Government projects being handled by the Federal Ministry of Works under the Renewed Hope administration.

Minister of Works, Engr David Umahi has expressed determination of the Federal Goverment to end the old order of unnecessary delays in the execution of road infrastructure projects by contractors and has therefore, taken steps to rejig the monstrous contract price variation clause which has been a major clog in the wheel of progress of project execution over the years. 

This is part of the strategic infrastructure  development masterplan of the Renewed Hope administration of President Bola Tinubu.

The Minister stated this on Tuesday, 11 June at a meeting with contractors handling Federal Government's projects, held at the Ministry's Headquarters, Mabushi-Abuja.

Umahi expressed the urgency of thinking realistically, creatively, innovatively, and thinking out of the square to overcome the funding challenges that face road infrastructure development in Nigeria.

Addressing the gathering, he disclosed that the Tinubu adminstration at inception, "inherited over 2600 ongoing projects from the past administration amounting to over N15 trillion, out of which only about N2 trillion was certified and paid. He further revealed that the government currently has ongoing projects put at a figure of N13 trillion, including budgetary projects, NNPCL, SUKUK, Presidential Initiative  Development Projects, other Tax Credit  Scheme Projects of NLNG, MTN, Dangote, BUA, Mainstream and projects under EPC +F, PPP."

He stated that the aftermaths of fuel subsidy and the forex forces affected  drastically the contract cost elements and pricing of which Variation on Price (VOP) could not provide a remedy especially for jobs awarded so many years ago, and where VOP on contracts was sometimes hitting 500%.

He further stated that in looking for a solution, the Ministry sought for and got Mr. President's approval to give an envelope in the 2024 budgetary  provision to keep all the inherited projects alive, believing that more funding of such projects could come by thinking outside the box. The new projects under the 2024 projects, including the constituency projects  of the National Assembly, also have poor budgetary allocations.

In tackling responsibly the challenges  of funding, price variation, and delays  in projects delivery, the Honourable  Minister introduced responsive  approaches which were adopted as the Ministry's measures to overcome the challenges of road infrastructure development in Nigeria. Such measures  include but are not limited to reviewing  the VOP clause to ensure workability  in line with the economic realities, making it a policy that all contractors handling two carriageway projects (with the exemption of the three legacy projects) must first complete one side of the two carriageways and thereafter continue  with the second part subject to availability of fund, advancement of funds after award of contract is subject to conditions contained in the bid document, going forward. 

"Other measures adopted were that contractors must have a timeline for project delivery, and every contractor shall have a duty to maintain  the road under construction until the entire project is completed and delivered. A deadline shall be given for all ongoing  projects, and with time, all projects that have no funding shall be stood down, but projects will be selected zone by zone or State by State for funding. In applying these measures, he emphasized that all contractors will be treated equally. "One thing that is our policy is that no contractor in the Ministry of Works will be treated differently.

He stressed that all contractors; indegenous or foreign will be accorded same measure of respect and patronage, i"nsofar as you can turn cement to the right grade and place it rightly, you are a good contractor as we will check and make sure that it is good." 

The Honourable Minister noted the various projects completed by contractors and other major ones to be ready for commissioning from July, 2024 and directed the Directors in charge of each geo-political zone to officially and publicly commission the various projects  completed in their respective Zones. 

He further directed that committees made up of the Ministry's Engineers and the Media correspondents be set up to pay inspection visits to the respective zones to assess the level of project performance in all the Federal Government projects being handled by the Federal Ministry of Works under the Renewed Hope administration.

This was contained in a statement issued and signed by Barr. Orji Uchenna Orji,  Special Adviser (Media) to the Honourable Minister of Works.