Monday, May 20, 2024

Lagos-Calabar Coastal Highway: Nigerian Govt counters Atiku, reveals project cost

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The Minister of Works, David Umahi, has stated the Lagos-Calabar coastal freeway will value N4 billion per kilometre and never the N8 billion per km reportedly claimed by former Vice President and Presidential candidate of the Peoples Democracy Occasion within the 2023 election, Atiku Abubakar.

The minister additionally dismissed claims that the challenge didn’t observe the due procurement course of, stating that the contract was awarded on a counter-funding foundation and never on a Public-Personal Partnership as extensively claimed.

Umahi disclosed this info when he appeared as a visitor on the Tv Continental Information Hour programme on Wednesday in Lagos.

He famous that the challenge will value N2.8 trillion when accomplished.

Recall that final week, Atiku Abubakar questioned President Bola Tinubu’s administration’s choice to allegedly award the contract to Gilbert Chagoury’s Hitech with out aggressive bidding, daring the president to reveal the total value of the Lagos-Calabar freeway challenge.

He additionally questioned why the Tinubu administration launched N1.06 trillion for the pilot part, or six per cent of the challenge, which begins at Eko Atlantic and is anticipated to terminate on the Lekki Deep Sea Port.

However in a press release on Tuesday, Umahi defined that regardless of the hovering prices of supplies within the building trade on account of commodity worth inflation and provide chain disruptions, the ministry is dedicated to prudence, promising to disclose the true value.

In a extra detailed response, Umahi confirmed that the challenge could be accomplished inside eight years, stating that utilizing the concrete pavement on the four-lane carriageway prices N4 billion per km.

He additionally defined that though N1.06 trillion was appropriated, the total quantity had not been disbursed.

The minister defined, “Individuals are constructing castles with out information, they usually don’t know figures; I’ll run them for you. We are going to examine the cross-section of the one the previous vp talked about that was renegotiated for $11.1 billion for 700 km.

“So it’s important to now ask what was there to be constructed. What was there to be constructed was the one accessible design from NDDC. They designed your complete 700 km, however we aren’t following precisely that sample or proper of manner. Now we have a special modification. The unique design had two carriageways on all sides of the street with 4 lanes.

“And so while you run the figures, you now discover out that below his calculation, it offers you over N19bn per kilometre. Now, dividing it by the 23 kilometres they’re doing is about 2.225 occasions a normal superhighway carriageway, which is N11.55 billion.

“Whereas what we’re doing, if you happen to divide it, you get N5.167 billion, So while you now divide utilizing our 1.067, you get about N4 billion/km. For those who return to what he has quoted, you’re going to get over N8bn.

“So, utilizing concrete, which must be dearer due to our terrain, and utilizing versatile pavement, which shouldn’t stand the coastal route, you can see out that our value is N4 billion as a substitute of the N8bn claimed by the previous vp.”

On the mode of the development course of, the previous Ebonyi governor defined that the administration by no means envisaged the challenge below a Personal Public Partnership association however below an Engineering, Procurement, Building and Finance programme at present used on the Abuja-Makurdi street challenge.

He stated, “This administration by no means envisaged the challenge below Personal Public Partnership. It has all the time been below engineering, procurement, building and finance.

“And so, below this type of association, as you may have on the Abuja to Makurdi street challenge, the federal authorities should pay a specific amount for counterpart funding.”

“On this explicit challenge of Abuja to Makurdi, which China Harbour is dealing with, the federal government is paying 50 per cent counterpart funding.

“Then you may have additionally from Makurdi to ninth Mile in Enugu State, the place we’re additionally paying 50 per cent counterpart funding. So, there’s a marked distinction between PPP and EPC plus F.

“On this challenge, there can be a negotiated counterpart funding of between 15 and 30 per cent”, he stated.

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