The Minister of Works, Sen. David Umahi, has told the National Assembly that it will not be blackmailed by any contractor whose contract it terminated due to high contract sums.
He also added that less than twenty projects have up to N10billion in the 2025 budget as proposed.
Umahi was referring to Julius Berger’s visit to the Senate Committee on Works on Wednesday, where it apologised for not honouring previous invitations of the Red chamber and assured that it is willing and capable of executing contracts for the government of Nigeria.
Speaking to the committe durong a bidget defence seaaion on Friday, the minister said, “I want the National Assembly to please discountenace the politics going on. We refused to be blackmailed by whichever contractor. It was at the time we took over office. The Abuja-Kano that was 750 kilometres, 510 had already been completed for N391billion and for the remaining 240 kilometres, the contractor wanted us to pay N1.1trillion, making it total of N1.5trillion.
“And I want the distinguished Senator to hear me on this because I listened to the submission in the Senate when Julius Berger came here. Berger came here not because we were not able to do our work, and that is Odukpani-Ikot-Itu projects. We did what we’re supposed to do. We did not waste time. After about 9 months negotiation front and back with Julius Berger, they were not prepared to accept a fair price for the project. We terminated the project.
“The National Assembly invited us and Julius Berger amd we came and Julius Berger did not come. So, they didn’t come because we didn’t do our job. They wanted to find out why we terminated the project because I think they reported us to the National Assembly.”
He added that between Julius Berger, Dantata and Sowoe, Mothercat, RCC, the ministry has terminated over 50 projects and in the upcoming months, will be working with the National Assembly to ascertain true statistics of projects. Umahi also added that the projects have been shared into two lots, the first has gone to BPP and they have given note of no objection.
“Some contractors have over 25 projects inherited, they don’t have the machineries, they don’t have capacity but we want to work with you to see how we can disaggregated that and have contractors to do those things they have the capacity to do,” he stated.
Speaking on the N800billion capital budget in the 2025 budget, he said the allocation is grossly inadequate and urged the Committee to make their good offices to put in more money in the budget.
Explaining further, he said, “We selected between 9 to 15 projects and we are very, very mindful of the fact that this is a democracy and that every Senator, every House of Representatives member came from a place. And so, we had to do a cumulative of the interests of National Assembly and of course the stakeholders of the country and in particular reference to projects within the economic corridor of this country.
“And so, when we took out N524billion from the N800billion given to us, we gave Southwest N94billion. So you can begin to think how much can N94billion do? Can it complete 50 kilometres of road? The answer is no. And then, Northwest, we gave then N94billion. Then the other four geopolitical zones, we gave them N85billion each. And so, that came to N524billion. And then, the bridges, we gave N129billion.
“Bridges are actually at a very serious situation. I don’t want to mention the bridges but discountenace the fake news going round that the 3rd Mainland bridge is shaking. It is not shaking, they probably will be observing, because the slab is a composite slab.
“In as much as they are doing work under the bridge and they are going to do work inside the water, the bridge is safe but not as safe as to allow big trucks to go on it. So, we have made press statements about that.
“And so, to keep projects, in line with the desire of parliament, we selected 2 projects per state and FCT and we gave it N1billion (each). This N1billion is to ensure that it is in the budget. Again, along the line of economic corridor and it is per state and that is N74billion.
“We also selected N100m projects and that’s the only new project in our budget and that is N500m per state and FCT. We gave it N100m. There are also very important projects but we should make budget so that if you find money for us, then it will fund what is already in the budget. Because if it is not in the budget, then it will difficult to fund the project even if you have money unless there is supplementary appropriation. That is N18.5 billion. And of course, you have N12 billion departmental projects. And then then, this is the main crux of the project.
“The N100m we put is NNPC project and that is phases 1 and 2. These NNPC projects are very, very important across the economic corridor and we inherited them. Of course, Niger State has about 27 percent of these projects. South South has 26 percent. Northwest has 24 percent and of course Southwest has 5 percent and Southeast has 4 percent.
“We inherited the projects and there is no way we can rearrange the projects because the order of the president is that inherited projects should go ahead and we are going ahead but it is important to inform the National Assembly that the NNPC is funding about 30 percent of the project and their funding will fizzle by May, and so we may have to come to the National Assembly for funding of these critical projects. Oyo-Ogbomosho, Eastwest Road.”
