The Federal Government has refuted rumours making the rounds that it stepped down inherited road projects.
The Minister of Works, Dave Umahi, who made this disclosure during a meeting with contractors in Abuja, said that such information was misleading, adding that neither President Bola Tinubu nor FEC gave that directive.
Umahi 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.
According to him, “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 the FEC is concerned about. We can’t have N500 million on budget but procurement is supposed to be N50 billion or N100 billion and you go ahead to award such a project. We have been directed not to do so.”
The Minister 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, according to him, 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 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.
Peoplesmind
