FEC did not cancel inherited Road Projects, says Minister

The Minister of Works, David Umahi has debunked rumours in the Media claiming that the Federal Executive Council (FEC), stepped down inherited Road Projects.

Umahi during a meeting with Contractors in Abuja ,said that such Information was misleading adding that neither President Bola Tinubu nor FEC gave that Directive.

He said that the Ministry was only directed by the President to review all Projects in the Country to decide those that would be given priority based on availability of Funds.

Umahi said, “Some of these Projects were awarded 18 years ago, some 10 years ago, others five years ago.

“On the issue of new Projects, if we have Appropriation that has not been completed, at least, one kilometer, we are not going to carry out such Appropriation.

“That is what FEC is concerned about. We can’t have N500m on Budget but Procurement is supposed to be N50bn or N100bn and you go ahead to award such a Project. We have been directed not to do so.”

Umahi reiterated the determination of the Federal Government in bringing Funding and Budgeting Innovations that would fast-track Road Infrastructure Development Nationwide.

He said that FEC had directed the Ministry of Works to work with the Federal Ministries of Finance, Budget and National Planning to put forward proper Budgetary Estimates.

This ,he said ,was for the 2025 Financial Year for Projects that were not appropriately budgeted for but have attained probably 80 per cent completion so that such Projects would be completed and delivered.

He however, said that Projects with huge Procurement Costs with little Appropriation and with little completion milestones would be reviewed in line with Section 51 of the Special Conditions of Contracts.

“On Issues of Variation on Price (VOP), all Projects we awarded in 2024 will not attract any VOP.

“We have made it as a Policy that such Projects can not get any variation.

“However, within the course of the year and the Project Execution, if there are Issues changing the basic Market Prices of Construction Materials to a certain extent, we will revisit the issue of VOP and it will not be selective,” Umahi said.

The Minister assured Contractors of the Federal Government’s willingness to engage in Contract Review and Cost Augmentation on the inherited ongoing Projects.

This is in view of the geometric rise in Cost of Contract Elements caused by the inherited challenging Economy.

He said this would however be subject to Funds availability.

Umahi said that the decision for windows to review and augment the Cost of inherited ongoing Projects was borne out of the President’s magnanimity and commitment to completing all inherited Projects.

He added, “The President promised to look for ways to fund the Projects, even outside the Budgetary Provisions, through the National Assembly.

“What we are doing now is to review the Projects in line with availability of Funds and make a Proposal to FEC.

“If such a Project has attained about 80 per cent completion, then we will make a Proposal to FEC that in subsequent Appropriation, money should be made available, and such Projects should be made a Priority, so that it could be completed.”

Umahi directed that Contractors working on Projects with dualisation should as a matter of Policy concentrate and first complete one Carriageway and turn it over for Public Use before working on the other lane.

 

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