….says no more refund henceforth …Approves N1.7bn Abuja 2nd runway consultancy services

The Federal Executive Council (FEC) has approved the reimbursement of funds expended on federal roads by some state governments.

The total sum to be reimbursed to five states is N148,141,987,161.25.

The beneficiary states are Cross River N18,394,737,608.85, Ondo N7,822,147,577.08, Osun N2,468,938,876.78, Bayelsa N38,040,564,783.40 and Rivers N78,953,067,518.29.

The memo was presented by the Minister of Works and Housing Babatunde Fashola at the third virtual council meeting, presided over by President Muhammadu Buhari inside the Council Chambers of the State House.

Information and Culture, Lai Mohammed, who briefed State House Correspondents on behalf of Fashola, said council has also warned there will be no reimbursement in future, should any state government venture into such projects without the nod of the government at the center.

Mohammed said: You will recall that in 2016, 36 states of the federation sent a very huge bill to the federal government, asking fo compensation for money that they have expended on federal roads. This prompted Mr. President to set up a committee to go and verify the claims of these 36 states, whether indeed these projects were actually constructed, were they completed, in line with the federal government standards.

“At the end of that exercise by an inter-ministerial committee, chaired by the honorable minister of works and housing but also had ministers of education, transportation, finance, minister of state go works, DG BPP and permanent secretary cabinet office as members.

“At the end of that exercise, the committee recommended that the federal government should refund N550,364,297.31 billion to 31 of the 36 states, after they were convinced that, yes indeed, the projects were completed and there were federal government roads. But the claims of five other states Cross River, Rivers, Ondo, Bayelsa and Osun failed on the grounds that they did not do proper documentation and they committee felt they needed proper documentation.

“So the committee went back with a new terms of reference to ensure that the claims of the five states were in order, that is why the BPP is on the committee. So at the end of the exercise, the committee now reported that the five states – Cross River with 20 roads and one bridge will get a refund of N18,394,737,608.85, Ondo with six roads to get a refund of N7,822,147,577.08, and Osun with two roads and one bridge to get a refund of N2,468,938,876.78.

“Others are Bayelsa with five roads and one bridge is to get a refund of N38,040,564,783.40 and Rivers with three roads and three flyovers bridges is to get a refund of N78,953,067,518.29.”

Mohammed said the committees confirmed the roads and the bridges, that not only were they completed, they are in substantial good form, adding that some of the bridges and roads were built about 10 years ago.

He said: However, there is a caveat, the federal government will pay the states but however, henceforth, if any state takes on federal government road, it will not be paid, they will not get any refund. Even if you want to pay from your own pocket, you will still need the permission of the federal government and it will be supervised by the federal ministry of works and housing.”

He said the modalities of refund is being worked out quad payment will be made over a period of time.

Mohammed said 31 states were earlier paid the sum of over N500 billion.”

The Minister or Aviation, Heidi Sirika, said council approved the sum of N1.659,596,908.78 billion for consultancy services for pri-contract services for the design and construction of Abuja’s second runway with a completion period of 12 months.

He said the contract went to a consortium of consultants comprising two international and one Nigerian consultants.

He said the contract sum includes seven percent of VAT and an exchange rate for the dollar component of $360 to one.

“What I want you assure the public is that a lot of work has been done in this procurement of consultancy services. It will be fast-tracked and it is the intention of the ministry to conclude before the end of the year, so that the balance of money that we have in the budget, we can appoint a contractor and commence the construction of the second runway, we hope to conclude the second runway if awarded before the end of the life of this administration.”

The Minister of Water Resources, Suleiman Adamu, said FEC approved N8.14 billion to the reactivation and completion of Farim Ruwa multipurpose dam in Wamba local of Nasarawa State.

He said the project was started by the Nasarawa State government in 2013 but the state government in 2018, requested the federal government to take over for completion.

He said President Buhari approved the project, a multipurpose dam project with provision for water supply, irrigation and 20 megawatts hydropower station.

Suliaman said: “All we intend to do at the federal level is to complete the dam and then hope that we can get concessioner to takeover the component of the hydropower, which includes the construction of the power house, the turbines and the transmission lines. The contract sum is N8.14 billion inclusive of all taxes with the completion period of 24 months.

It comprises of the completion of the dam embankment, spring lay and outlet works for the water supply and hydropower component, 20 kilometers of access road and rehabilitation of some service quarters.”