***As second Niger Bridge faces challenges
The Federal Ministry of Works will henceforth include a provision for a 15-year shelf-life insurance guarantee for projects and a maximum of 5% Variation of Price (VoP) Clause in the contracts.
The minister in charge of the ministry Senator David Umahi, made the disclosure during the 2024 budget hearing before the joint committee on Works on Monday in Abuja.
Regarding the use of concrete and asphalt pavement, the Minister indicatef that the Ministry’s new policy aims to prevent excessive cost increases in contracts.
This was as the minister indicated that the Niger Bridge which was completed and handed over to government recently will be “almost inoperative” unless two Bypasses in Asaba and Onitsha are constructed.
Umahi said the bridge is today faced with serious challenges of the need to construct the Approach roads 2A and 2B which were awarded by FEC but have funding challenges to take-off.
Umahi said the remaining two Bypasses in Asaba (2A) and Onitsha (2B) awarded to Julius Berger Nigeria Plc and Reynods Construction Company Nigeria Limited respectively, during the last Administration were initially estimated at about N200b but with the current inflationary trend, the cost may jack up to N260billion.
“There is no funding for these projects and the projects have not taken off. Let me note that without these Bypasses, the completed 2nd Niger Bridge will be almost inoperative.
Earlier, the Chairman of the Senate Committee on Works Senator Barinada Mpigi (PDP, Rivers South-East), urged the minister to oversee and ensure that the ministry’s budget aligns with the needs and demands of Nigerians.
Meanwhile, a total sum of N657,228,251,596 was proposed for 2024. Of the amount, N566,466,977,361 was proposed for capital budget for the main Ministry of Works, while N51,282,456,911 was proposed for Federal Road Maintenance Agency (FERMA) and N104,039,920 was proposed for African Regional Institute for Geo-Spacial Information Science and Technology AFRIGIST.
