Niger Delta
FG Reviews Cost Of East-West Road
The Federal Executive
Council last Wednesday approved the revised estimated total cost for the East-West.
Road Project, Sections I and II (Sub-Sections II-I and II-II) will gulp the sum of N23.4 billion.
Supervising Minister of Information, Dr Nurudeen Muhammed, who disclosed this to State House Correspondents at the end of the FEC meeting presided over by President Goodluck Jonathan said the contract sum was inclusive of all taxes and it had a completion period of seven months.
He said, “the Minister of Niger Delta Affairs tabled a memo before council seeking council’s approval for the Revised Estimated Total Cost of various contracts as a result of rising costs of critical construction materials, plants, localised taxes, spiral effect of inflation etc, which has reached an unbearable level over the years such that the subsisting unit rates could no longer sustain.
“Council approved the Revised Estimated Total Cost (RETC) 2 for the East-West Road Project, Sections I and II (Sub-sections II-I and II-I) in the sum of N23.4bn, inclusive of all taxes in favour of Messrs Sectraco (Nigeria) Limited with a completion period of seven months. “There is a budgetary provision of N52.7 bn for East-West Road (Sections I & II) in 2014, which is made up of N18.5bn from the main line budget, N21bn SURE-P budget and N13.3bn AFDB loan,” he added.
According to him, the council also approved the contract for the construction of the East-West Road, Section V (Oron-Calabar) Phase 1, beginning from Uyo/Oron Roundabout in Akwa Ibom State to Calabar-Odukpani Road in Calabar, Cross Rivers State.
He said the contract, which costs N165.249bn, had a completion period of five years.
“The benefits to be derived from the extension of the East-West Road are enormous as it greatly reduce travel time from Oron, which the end section IV of the East-West Road to Calabar form three hours to 30 minutes. “It will also reduce vehicle operating costs, opening up access to various riverine communities and the proposed Ibaga seaport. In addition, there will be increase in economic activities that will be generated as well as creating employment opportunities for over 1,500 skilled and unskilled workers, including engineers, technicians and artisans,” he declared.