Abuja – The Federal Government on Wednesday in Abuja approved N165.2 billion for the construction of the East West Road, Section V (Oron-Calabar) phase 1 in Akwa Ibom and Cross River States.
The supervising Minister of Information, Dr Nurudeen Muhammed, stated this when he briefed State House correspondents on the outcome of the weekly Federal Executive Council (FEC) meeting, which was presided over by President Goodluck Jonathan.
“The Minister of Niger Delta Affairs brought a memorandum to seek Council’s ratification of Mr President’s anticipatory approval for the award of contract for the construction of phase one, section five of the East West road, beginning from Uyo/Oron roundabout in Akwa Ibom state to Calabar-Odukpani road in Calabar, Criss Rivers State.
“The benefits to be derived from the extension of the East-West road are enormous as it will greatly reduce travel time from Oron, with the end of section four of the East-West road to Calabar from 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.
“The Council ratified Mr. President’s anticipatory approval for the award of contract for the construction of phase 1, section 5 of the East-West road, beginning from Uyo/Oron roundabout in Akwa Ibom state to Calabar-Odukpani road in Calabar, Cross Rivers State in the sum of N165,249,125,989.16, with a completion period of five years.“
He said the council also approved the award of contract for the supervision of construction of Calabar-Oba-Nsan-Okoroba-Ajasor road (Section 1) in Cross River State and construction of road/drainage at Mbaise Ring Road intersecting Owerri-Umahia road in Imo.
According to him, the projects upon completion will enhance the spread of infrastructure development across the entire Niger Delta region.
“The Minister of Niger Delta Affairs tabled a memo before council seeking council’s approval for the Revised Estimated Total Cost (RETC) 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-II) in the sum of N23, 484,369,831.99 inclusive of all taxes in favour of Messers Sectraco (Nigeria) Limited with a completion period of seven months.’’
According to the Minister, there is a budgetary provision of N52.7billion for East West road (sections I & II) in 2014 which is made up of N18.5billion from the main line budget, N21billion SURE-P budget and N13.3billion AFDB loan.
The minister further disclosed that the council approved N131.9million for the purchase of a building situated at plot 187, Housing Area B, new Owerri, Imo state, as Zonal Office for the Nigerian Electricity Regulatory Commission.
He said the provision of office accommodation would enable NERC to effectively perform its regulatory function in the zone as there was provision of N565million in the NERC’s 2014 appropriation to cater for the transaction.
He said the N131.9million meant for the purchase of the building included five per cent agency and five per cent Value Added Tax (VAT).
Muhammed also revealed that the council approved 21.4million dollars (N3.5billion) for the supply and installation of a full Jet-Flight Simulator (5000 Series B737) with complete accessories for the Nigerian College of Aviation Technology (NCAT), Zaria.
He said the project which would serve a dual purpose of a training facility for the college and a source of revenue generation for the country, would be located at the Murtala Mohammed Airport, Lagos
“In addition, it is being used for the initial training of students as it will enjoy the patronage of the commercial airliners in Nigeria and the West African coast in the recurrent training of their jet-airliner pilots in compliance with the ICAO and NCAA regulations that pilots must have refresher training every six months.
“The project will be funded from the sum of N3.34 billion provided in the 2014 Appropriation of the Ministry for the “Procurement of Simulator” for the NCAT Zaria, while the balance will come from the NCAT’s 2015 Budget.
“Council approved the award of the contract for the supply and installation of a Full Jet-Flight Simulator (5000 Series B737) with complete accessories for NCAT, Zaria, to be located at MMIA Lagos in favour of Messrs. CAE, Canada in the sum of $21.5 million inclusive of all taxes payable at the prevailing exchange rate at the time of payment with a completion period of 24 months.“
He said the Council approved the appointment of a Transaction Adviser for the Rehabilitation of the Independence Building for the National Trade and International Business Centre (NITBC) project in Lagos State.
“It is expected that upon successful completion of the project, the centre will generate revenue and provide a nonstop international centre for the development of trade and enhancement of foreign investment in Nigeria.’’
According to him, the centre will also serve as an engine room for commerce which will further propel Nigeria towards the vision of becoming one of the World’s 20 largest economies by 2020.
“After due consideration, Council approved the award of contract for the appointment of Transaction Adviser for the Rehabilitation of Independence Building for National Trade and International Business Centre Project in Lagos State in favour of Messrs Infrastructure Bank Plc, in the sum of N150,364,000 only with a completion period of 12 months,’’ he added.(NAN)
By Edos News