Minister of Works, Dave Umahi
The Minister of Works, Engr Dave Umahi has stated that the contractor handling the Abuja-Kaduna Road is requesting about N1.35 trillion to complete the road- up from the N165 billion initially agreed.
Engr. Dave Umahi stated this during a meeting with Ministry Directors in Abuja, where he clarified that the contracts’ cost, scope, and technical aspects are set to undergo a thorough review.
According to him, preparations for the project are in progress, but funding poses a challenge as the contractor, Julius Berger, is requesting around N1.3 trillion. Additionally, he assured that the project would be completed by 2024.
- He stated, “We have about 1.7 kilometres left of Abuja-Kaduna in two sections. The ministry has some supervision work to be done on that road and we will be advised on the real designs of the two sections.”
- “Funding is also an issue because it is under the presidential development fund initiative gotten from looted funds. I have had to discuss with Mr president about the importance of the road for all users. But I won’t be able to go back to him until we re-scope it because the project was N165 billion before and a review brought the cost to N655 billion but today the contractor is asking for N1.35 trillion and the government cannot afford it.”
Review of existing project contracts
Speaking further, the Minister explained that he requested a 5% equity contribution or guarantee from the contractors to ensure the commitment of those genuinely dedicated to the project.
Senator Umahi emphasized the importance of revisiting existing contracts, including agreements, costs, and geotechnical evaluations, to address issues hindering the progress of road projects.
- He said, “There is a need to review our project agreements and costs. When we give the right costing, the little resources we have will be able to go a long way towards meeting the expectations. We are to review what has been so disadvantageous to our road construction.”
The Minister assured that if the ministry receives N892 billion, all funds would be transparently utilized with no remaining balance by December 2024.
Sources reported that the Federal Government in a bid to counter the escalating costs of the Abuja-Kaduna Road project is contemplating collaborating with Dangote Industries Limited for the initial 40 kilometres under the Tax Credit scheme.
