Percy Onyeka
The Works Minister and former Governor of Ebonyi State, Engr. David Umahi, on Monday, requested that 30% of the budget of the Ministry be set aside as an emergency fund, for addressing unforseen emergencies on the country’s roads nationwide.
Umahi, who made this request during a budget defence session before the National Assembly joint Committee on Agriculture, noted that the emergency fund, if approved, would be used to address unforseen emergencies that regularly occur on the road network especially during the rainy season.
He also requested for an increase of the Ministry’s present budgetary allocation of N 657,228,251,596 to about N1.5 trillion, to complete at least ten selected critical roads and bridges in each of the six geo-political zones of the country.
The Minister sought further for urgent review of all certified debts to contractors and if possible, convert same to Promissory Notes to contractors so that we can get properly focused in using any fund appropriated to us to pursue the Ministry’s set objectives.
Umahi noted that following the worsening inflation in the country, many contractors were presently out of sites because they had exhausted their contract VoPs and needed the projects unit rates to be reviewed.
He therefore, suggested that all VoPs and augmentations of all the projects be reviewed and those owed be converted to promissory notes, while unit rates regime would take effect on contractors in line with the current realities of the construction industry.
Also, the Minister recommended to the joint National Assembly Committee, that more eligible companies should be encouraged to key into the Road Tax Credit Scheme, to increase the number of private sector interventions, explaining that this would mean front-loading their tax liabilities to solve the nation’s present challenges.
He eaqually suggested the raising of bonds from the capital market, to finance road development in the country just as he urged government to create an enabling environment by fixing the roads so that the deployment of the Highway Development and Management Initiative (HDMI) could be effective.
Umahi called on the lawmakers, to look into the issue of appropriations for projects, so that it would be such that no projects when started should last for more than four years.
His words: “From the fore-going, I would like to recommend as follows: The provision of an Emergency Fund of about 30% of the Budget Provision to cater for unforeseen emergencies that regularly occur on the road network especially during the rainy seasons;
“An increase of the Ministry’s present budgetary allocation to about N1.5tr to complete at least 10 selected critical roads and bridges in each of the six geo-political zones of the country;
“Urgent review of all certified debts to contractors and if possible, convert same to Promissory Notes to contractors so that we can get properly focused in using any fund appropriated to us to pursue the Ministry’s set objectives;
“Inflation- Many contractors are presently out of sites because they have exhausted their contract VoPs and needed the projects unit rates to be reviewed. It will be good that all VoPs and augmentations of all the projects are reviewed and those that are owed be converted to Promissory Notes, while unit rates regime will take effect on contractors in line with the current realities of the construction industry.
“More eligible companies should be encouraged to key into the Road Tax Credit Scheme to increase the number of private sector interventions. This means front-loading their tax liabilities to solve our present challenges;
“Raising of Bonds from the Capital Market to finance road development in the country;
Creation of an enabling environment by fixing the roads so that the deployment of the Highway Development and Management Initiative (HDMI) can be effective; and
That appropriations for projects be such that no projects when started should last for more than four years.”
On the controversy about the use of asphalt and concrete in road construction, the Minister of Works said: “It would be my great pleasure to clarify the misunderstanding of the Ministry’s new policy direction regarding the use of rigid pavement on her projects.
“I have to state categorically that no contractor is prevented from executing the scope of works originally signed with the client once certain conditions are observed, which are provision of a 15-year shelf-life Insurance Guarantee for the works and a maximum of 5% of Variation of Price (VoP) in the Contract.
“The Ministry’s new policy is to prevent excessive augmentation of contracts considering the scarcity of forex and weakening of the Naira against the Dollar which makes the cost of bitumen (which is fully imported) increase in geometric progression against the arithmetic progression rise in cement prices in concrete road pavements. In these times of rising inflation and scarce resources, the country needs to look inwards to conserve foreign exchange.”
Meanwhile, the Chairman of the Senator Committee on Agriculture and Co-chairman of the joint Committee, Senator Mpigi Barinada, raised the alarm that there are so many abandoned road projects across the country, which the contractors had collected reasonable somes of money.
He said: “The contractor handling the rehabilitation of Aba-Owerri Road, through NNPC Depot expressway, Abia State; he has been mobilised. As we speak, he has not done any job. We don’t have to mention his name here. He has collected the sum of N76 million.
“The rehabilitation of Argungu Road in Kebbi State; it is being handled by the Setracco. He has collected over N400 million but he is not on site. The rehabilitation of another road in Ogun State; the contractor has collected over N25 million but he is not on site. The construction of Asaba-Agbo Road; the contractor has collected the sum of N50 million but with zero performance.”
Senator Barinada, after drawing the attention of the Minister of Works to numerous road projects across the country, which the contractors abandoned after collecting huge sums of money, urged the Umahi to look into the issues and ensure that the contractors were compelled to return to site.
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