The Federal Executive Council (FEC) Wednesday approved N15.7 billion for the completion of work on Suleja-Minna-Labata road in Niger state and Ibadan-Lagere-Ilesa bye-pass road linking Oyo and Osun states.
This was disclosed by the Minister of Works and Housing, Mr Babatunde Raji Fashola at the end of the weekly FEC meeting.
He said N12.6 billion was approved as variation for the completion of Suleja-Minna-labata road while the remaining N3.1billion was for the completion of Ibadan-Lagere-Ilesa bye-pass road.
“Two contracts were approved. The first one is the Ibadan-Lagere-Ilesa, 22 kilometers, the contract was first awarded in 2010, without budgetary funding and the rates have become obsolete so the contractor wants new rates and that has necessitated a revision of the rates by N3.165 billion and that means the old contract price of N6.7 billion has now moved to N9.8 billion.
“The same is true of the Suleja-Minna-Lambata road, covering a total of 101 kilometers, it was awarded in two phases, the first phase was awarded I believe in 2010, 40 kilometers, and then the second phase covering 61 kilometers, was awarded in March 2015 but they used the 2010 rate.
“So, the contractor is now saying he cannot continue that way because those rates are unsustainable. So, we recommended that the revised rates be considered and the Federal Executive Council approved that. Now it’s a revision by an addition of N12.6 billion so the contract sum now moves from N23.6 to N36.2 billion,” he said.
He said the approvals were given in line with government’s desire and determination to focus on projects that can be completed rather than just starting new projects.
He said the projects were consistent with the realities of economic rates, market price indices for road inputs like cement iron rods and diesel among others.