FG inherited N14trn debt, over 2,600 road projects— Umahi - NEWS FRONTIER DAILY

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Sunday, September 17, 2023

FG inherited N14trn debt, over 2,600 road projects— Umahi






The Federal Government at the weekend said the present administration inherited about N14 trillion debt on 2,604 roads projects of 18,000 kilometers from the Muhammadu Buhari administration.

Minister of Works, Senator Dave Umahi disclosed while briefing State House correspondents after his maiden briefing session with President Bola Tinubu at the Presidential Villa, Abuja.

The Minister also revealed that President Tinubu and the Chairman and CEO of BUA Cement met and an agreement was reached on crashing cement price in the country. 

Senator Umahi further disclosed that he sought the approval of the President to terminate some of the projects that have stayed up to 10 years without any defined source of funding.

He said that the Federal Government would redesign yet-to-be-completed road projects to concrete pavements, adding that using cement for roads is more reliable and cost-effective than the widely-used bitumen, insisting that it can last for 50 years.

According to him, “The ministry inherited a total of 2,604 projects, worth N14tn and for 18,000 kilometers of road, that’s what we had. "

The Minister explained that since assuming office on August 21, his ministry has paid N4 trillion of the N14 trillion owed to contractors constructing various road projects nationwide.

He said, “Between when we came on board and now, about N4tn has been paid. And so that is a balance of N10tn remaining.”

Senator Umahi, who is the immediate past governor of Ebonyi state said road projects that have lingered for about two decades were never appropriated and, therefore, would have to be terminated at his behest.

He said although the ministry has identified funding sources to offset N4 trillion of its outstanding debts to contractors, Umahi noted that it still has a funding gap of N6 trillion. 

He said, “Now, in this N10 trillion, we have defined sources that could fund up to N4 trillion. So, we have a funding gap of about N6 trillion. That is what is there now.

“We have a number of programs for road development under the previous administration. We inherited all the projects; we have not dropped any of them. But curious to know that some of these projects have lasted for 20 years, some 10 years. In fact, in most cases, they were never appropriated throughout every tenure.

“So I went to seek Mr. President’s nod so that I will be able to terminate some of the projects that have stayed up to 10 years without any defined source of funding. "

The Minister lamented the current appropriation system for federal road projects, saying the piecemeal disbursement of funds to contractors is stymying delivery.

According to him, “I shared with Mr president that the way appropriation is being done is not healthy to develop our roads infrastructure. For example, for a road that may cost N10 billion, an appropriation of N150m is made.

“It is just for the contractor to take and put in his pockets because where an average cost of projects that we inherited is about N700 million per kilometer and you are given out N150 million for the whole year, then you are just enhancing the pockets of the contractor."

Umahi said said in his discussion with the President, he had urged him (Tinubu) to engage with the National Assembly to prioritize projects.

“Just look at over 2600 projects, 18,000 kilometers of roads, and N14 trillion. That is huge! And the worrisome part of this is that even the ones that are being funded properly, the roads hardly last up to five years,” Umahi complained.

He said the short lifespan of roads necessitated his recent proposal to the President to redesign and construct yet-to-be-completed federal roads using reinforced concrete.

“So I briefed Mr. President on what we are doing by introducing reinforced concrete technology for our road pavements,” he said.

Umahi, who is an engineer by profession, vowed to “fight” entities poised to frustrate this plan, saying, “I know that there are a lot of fights from contractors, but I’m David, I’m known for fight and I will fight this because I’ve reported myself to Mr. President.”

Recall that while speaking in Akure on September 1, 2023, Senator Umahi has said that the Federal Government would redesign yet-to-be-completed road projects to concrete pavements.

He argued that using cement for roads is more reliable and cost-effective than the widely-used bitumen, insisting that it can last for 50 years.

He had said, “We are sure that this is the way to go and it has a guarantee of 50 years "

Despite pockets of opposition to the use of reinforced concrete, the Minister said he had received the President’s backing and would proceed with the plan.

He said, “Incidentally, Mr. President is also an infrastructure guru. And he fully supports that we should use reinforced concrete for our road pavements.

“So there is no other place you can report me other than to report me to God. So Mr. President is supporting me that way. We’ll redesign our roads in reinforced concrete pavement.

“I’m aware that the contractors have been quarreling and arguing. So, I want to declare that I’m open to any kind of blackmail, but my eyes are on the ball. And my eyes are on how we can get Nigerians to have value for the money. That is the assignment President Bola Tinubu gave to me. And I’m going to do that with the fear of God.”  

Citing a solidarity visit paid to the President last Thursday by a delegation from Rivers State, the Minister revealed that he had written the NNPC to release monies for the East-West Road, saying, “I know that’s what the Rivers people mentioned when they came to see Mr. President. So that road is going to be on concrete.”  

Having toured the South East and parts of the North West and North Central, Umahi said he would now focus on the South West, particularly Lagos State, where works are ongoing on the Third Mainland Bridge, Carter Bridge, Liverpool Bridge, the Eko Bridge and Marine Bridge.

“I want to see things for myself and appraise the ongoing projects. I want to see who is doing a good job and who is doing a bad job. So I briefed Mr. President about that,” he explained.

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