The Federal Executive Council (FEC) on Wednesday approved the $1.79 billion contract awarded to China Civil Engineering and Construction Corporation (CCECC).
The contract, to be funded by China EXIM Bank is for rail project in the Federal Capital Territory (FCT).
Briefing Journalists at the end of the meeting chaired by President Muhammadu Buhari, Minister of Power, Works and Housing Babatunde Fashola and Minister of FCT, Bello Mohammad explained in details modalities for the contracts.
According to Fashola, N80 billion was approved for 12 roads and bridges in various states including Taraba, Adamawa, Sokoto, Zamfara, Bauchi, Plateau, Osun, Kwara, Kano, Oyo, Enugu, and Kaduna.
He explained that there was also approval of N150.84 million for the engineering and Consultancy design for access road 1 and 2 to link Asaba in Delta State and Onitsha in Anambra State to link the Second Niger Bridge project.
Explaining further, he said: “Subsequent to the award of further works of the Second Niger Bridge, we have started work now by this approval on the design of the link road that will connect the two states to the bridge.
“The design is expected to be completed in six months and we will start procurement and as the bridge advances, we can then connect the two states.” he said
He added: “It was awarded in 2010 and should have been completed in 2013. The expatriate who were implementing it were kidnapped and when he was eventually rescued he never came back and that delayed the project.
“But we have revived the project, a new contracting team is back on site. The contract of the consultants representing us has expired and so we are extending his contract to cover new period of completion.
“It’s a programme that comprises many policy actions, operational and financial interventions that needs to be carried out by government to improve transparency, service delivery, performance of DISCOS, Transmissions companies, the entire value change in order to create more viable power sector that is private sector driven.
“Some of the highlights of the programme is how to simplify and reduce the cash deficits that have accumulated as a result of previous unilateral reductions of tariff by the last administration during the running of the elections, how to make the DISCOS viable, accountable, responsive to customers, ensure stability of the grid and expansion of the grid and transparency and communication within the sector.
“And also processes for Ministries, Departments and Agencies (MDAs) debts and how to improve sector governance, our roles in the business, the quality of personnel on the board of the DISCOS, it addresses access to renewable energy especially in rural areas using mini-grids and stand alone solutions and how we are going to carry out the solutions that have been developed for 37 federal universities and seven tertiary hospitals.
“And how to solve the Niger Delta problem and also how to ensure there is a stable and predictable foreign exchange policy for the sector so that it is somewhat protected from sudden head winds of the volatility of the foreign exchange market so that they can plan and deliver.
“Also how to address the issue of vandalization at consumer and production levels of pipelines and so on as this will help bring confidence to the market and stimulate the appetite that currently exists globally for Nigeria’s power sector.
“We see a lot of people who want to invest but some of them are tied to what other international financial institutions do and the institutions are also waiting to see us commit to these things.” he said
On his part, the FCT Minister explained that the Council approved three key projects for the FCT.
He explained that N2.454 billion was approved for 5 kilometre road to link Ring Road III to Wasa Junction with Karshi -Ara-Apo Road while approval was also given for the award of contract for Phase 2 of the Abuja Mass Transit Lot 1B (26.77km) which is from Ring Road I, passing through Area 10 beside Wuse Market, Berger Junction, Jabi Motor Park, through Life Camp to Gwagwalada and also covering the remaining part of Lot 1A (5.76km).
