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Tag: FEC okays

  • FEC okays $995m, N15.45b for roads

    The Federal Executive Council (FEC)  yesterday approved $995 million and N15.45 billion for two roads.

    Minister of Power, Works and Housing, Babatunde Fashola briefed State House correspondents at the end of the meeting presided over by President Muhammadu Buhari.

    With him were Minister of Information and Culture Lai Mohammed, Minister of Transportation Rotimi Amaechi, and Minister of Water Resources Suleiman Adamu.

    Also, Finance Minister, Mrs Kemi Adeosun, said FEC gave approval to obtain a French Development Agency (AFD) credit of $60 million for the scaling up of the Second Rural Access and  Mobility Project (RAMP II) to include Imo State.

    She recalled that the National Assembly had in the 2010 External Borrowing Plan of the Federal Government, approved AFD’s credit facility of $60 million to implement RAMP in Imo State.

    Like the firts phase of the project, its development objectives are to improve transport situation and facilitate access to rural population through the rehabilitation and maintainance of key rural transport infrastructure in Imo State.

    Fashola said N15.45 billion was approved for 58.9 kilometer Magami – Kwajani – Ningi road connecting Bauchi and Kano states.

    He also said  $995 million was approved  for the second phase of Abuja – Keffi – Akwanga – Lafia – Makurdi road.

    He said: “This the section that comprises 16:0 kilometers which is the Lagos by-pass and the section that also comprises 251.7 kilometers from Ninth Mile through Otukpo to Makurdi. A total of 268.5 kilometers for $995 million.

    “The reason is that it is the Abuja -Keffi road which was awarded in 2015, for which finance is now available. So, this is the second phase for which the finance is not yet available but the award is the pre-condition to now get the loan from the China-Exim Bank, so that by the time work on the first phase finishes, we can seemlessly continue the second phase all the way to Makurdi.”

    The Minister of Transportation, Rotimi Amaechi, said  21 million Euros was approved for the purchase of two tug boats for the protection of Nigerian waters.

  • FEC okays $400m foreign loans for Lagos, Rivers, Osun, Ogun, others

    FEC okays $400m foreign loans for Lagos, Rivers, Osun, Ogun, others

    The Federal Executive Council (FEC) yesterday approved over $400 million infrastrutural projects in Lagos, Rivers, Osun and Ogun states.

    The Minister of State for Finance, Bashir Yuguda, and Minister of Aviation, Osita Chidoka, broke the news to State House correspondents at the end of FEC meeting chaired by Vice-President Namadi Sambo.

    Lagos will obtain $100 million loan from the French Development Agency in support of the Lagos Integrated Urban Development Project (Eko-UP), to improve the living conditions of the most vulnerable urban population of metropolitan Lagos, improve management and treatment of solid waste, strengthen the capacity of Lagos State and implement urban development projects in the state.

    Rivers State, he said, would get African Development Bank (AfDB) $200 million loan for the proposed Port Harcourt water supply and sanitation project and an African Development Fund (ADF) credit of $5million to support Urban Water Sector Reform Project to provide sustainable access to safe drinking water and sanitation to the residents of the city.

    He said Ogun State would obtain $33.174million credit from the French Development Agency for the Ogun State Water supply project to increase the coverage, continuity and quality of service in the state capital, increase the financial viability of existing water utility through increase in revenue collection, providing financing to rehabilitate and build infrastructure needed to increase access to water supply services in the state capital.

    For Osun State, the Minister said that FEC approved an Islamic Development Bank Loan of $65 million – under the Manufacturing/Financing (IStisna’a) – to finance water supply and sanitation projects.

    Other loans approved by the FEC, according to Yuguda, include the Multi-Donor credits from the International Bank for Reconstruction and Development of World Bank, Africa Development Bank, Germany and French Development Agency, are $500 million, $450 million, $200 million and $130 million.

    “The loans total about $1.45billion and is for the establishment of the proposed Development Bank of Nigeria,” he said

    He said a $70 million loan from the International Development Association was approved by the Council for the proposed Africa Higher education Centre of Excellence project, which is meant to build on the efforts made under the previous World Bank Assisted science and technology education school projects.

    He also said FEC approved the President’s anticipatory approval to obtain additional  $140million credit from the international Development Association for the community and social development project being implemented in the 36 states and the Federal Capital Territory (FCT).

    “There was also the ratification of the President’s anticipatory approval to obtain $70 million credit facility, associated grants of $15million and $0.48 million in support of the climate change adaptation and agribusiness support programme from International Fund for Agricultural Development. The programme is to be implemented in Borno, Jigawa, Katsina, Kebbi, Sokoto, Yobe and Zamfara states for six years,” he added.

    He however dismissed reporters’ curiosity over the loans to states controlled by the opposition All Progressives Congress (APC) so close to the general elections, adding that the gesture should not be seen as Greek gifts.

  • FEC okays N188.94b for East-West road, others

    FEC okays N188.94b for East-West road, others

    THE Federal Executive Council (FEC) has approved N188.94 billion, following requests made by the Ministry of Niger Delta Affairs, including construction projects for the East-West road.

    Supervising Minister of Information Nurudeen Mohammed broke the news yesterday while briefing State House correspondents at the end of the FEC meeting presided over by President Goodluck Jonathan.

    He was accompanied to the briefing by Minister of Aviation Osita Chidoka, Minister of Niger Delta Steve Oru and Supervising Minister of Health Khaliru Alhassan.

    According to him, of the sum, N165.25 billion was approved for the construction of Phase 1, Section V of the East-West road.

    He added that N23.48 billion was also approved as Revised Estimated Total Cost (RETC) 2 for the East-West Road Project, Sections I and II (Sub-Sections II-I and II-II).

     He said: “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 1, section V of the East West road, beginning from Uyo/ Oron roundabout in Akwa Ibom State to Calabar-Odukpani road in Calabar, Cross Rivers State.”

     He explained that the extension of the road would reduce travel time from Oron 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 minister said.

    He added: “Council ratified Mr. President’s anticipatory approval for the award of contract for the construction of Phase I, Section V of the East-West road, beginning from Uyo/Oron roundabout in Akwa Ibom State to Calabar- Odukpani road in Calabar, Cross Rivers State in favour of Messrs China Civil Engineering and Construction Company(CCECC) at N165,249,125,989.16, with a completion period of five years.

    “Approval for 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-Umuahia road in Imo State.

    “After the adoption of the previous conclusion, the Minister of Niger Delta Affairs presented a memorandum to seek council’s approval for the award of contract for the supervision of the construction of Calabar-Oban-Nsan-Okoroba-Ajasor road (Section1) in Cross River State and the construction of Mbaise Ring Road intersecting Owerri-Owerri road in Imo State.

    “The projects upon completion will enhance the spread of infrastructure development across the entire Niger Delta region. After deliberations, Council approved the award of the two contracts for the supervision of the projects in favour of the two companies as indicated below:

     “Messrs. Siraj (Nig) Limited, supervision of the construction of Calabar-Oban-Nsan-Ajasor road (section) in Cross River in the sum of N106,407,242.51 with a completion period of 24 months.

     “Messrs. Reset Consult, supervision of the construction of the Mbaise Ring Road intersecting Owerri-Umahia Road in Imo State for N106,407,242.51 with a completion period of 24 months”.

     He added that the minister also tabled a letter before council seeking its 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.

    He said: “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) at N23, 484,369,831.99  inclusive of all taxes in favour of Messers Sectraco (Nigeria) Limited with a completion period of 7 months.”

     “There is a budgetary provision of N52.7 billion for East West road (sections I & II ) in 2014, which is made up of N18.5 billion from the main line budget, N21 billion SURE-P budget and N13.3 billion AFDB loan.”

    For the aviation sector, he said $21.459 million (N3.5 billion) was approved for the supply and installation of a full Jet-Flight Simulator (5000 Series B737).

    According to him, the simulator with complete accessories is for the Nigerian College of Aviation Technology (NCAT), Zaria, but will be located at the Murtala Muhammed Airport, Lagos.

     The minister also explained that the Minister of Power presented a memorandum, seeking FEC’s approval 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.

     Mohammed said: “Provision of office accommodation will enable NERC to effectively perform its regulatory function in the zone as there are provisions of N565,127,793.08 in the NERC’s 2014 appropriation.”

     He said the Minister of Industry, Trade and Investment brought another memorandum seeking the council’s approval for the award of contract for 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.

     “It is expected that upon successful completion of the project, the centre will generate revenue and provide a none-stop international centre for the development of trade and enhancement of foreign investment in Nigeria. Also, it will 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,” the minister disclosed.

  • FEC okays $242.2m World Bank loans for Lagos

    FEC okays $242.2m World Bank loans for Lagos

    The Federal Executive Council (FEC) yesterday approved two World Bank loans of $242.2 million (over N40 billion) for infrastructural development in Lagos State.

    Addressing reporters after the FEC meeting presided over by President Goodluck Jonathan, Minister of Information Labaran Maku said the first loan of $200 million from the International Development Association (IDA) was for the Second Lagos State Development Policy Operation.

    The second loan of $42.3 million is additional financing for the Lagos-Epe Secondary Education Project.

    There is 0.5 per cent commitment charge, 0.75 per cent service charge and 1.25 per cent interest per annum on the loans.

    They are to be repaid in 25 years. There is a five-year moratorium.

    Maku said: “The Coordinating Minister of the Economy/Minister of Finance Dr. Ngozi Okonjo-Iweala brought a memo seeking the council’s approval to obtain additional credit facility from the IDA in support of the Second Lagos State Development Policy Operation.

    “The objective of the project is to improve on public finance in a sustainable manner and consolidate on the achievements recorded under the first phase of the project. The project covers the construction of a 27-kilometre light rail, schools and the Adiyan Mini-Water Works, which would provide two million gallons of water per day.

    “The FEC approved that the Ministry of Finance obtains additional credit facility of $200 million from IDA.

    “The council also approved that the Coordinating Minister for the Economy (CME) should execute the financing agreement on behalf of the Federal Government. It directed the Attorney-General of the Federation and Minister of Justice to issue the legal opinion required to render the credit effective.”

    On the second loan for Lagos State, Maku said: “After deliberations, council approved that the ministry of finance obtains an IDA credit of $42.3 million as additional financing for the Lagos-Epe Secondary Education Project.

    “The council approved that the CME should execute the financing agreement on behalf of the Federal Government and direct the Attorney-General to issue the legal opinion to render the credit effect.”

    Federal Capital Territory (FCT) Minister Bala Mohammed said the council approved N2 billion contract for the operation, maintenance and training of workers for the Wupa Basin Sewage Treatment Plant in the city.

    He said: “The training component in the previous maintenance contracts offered opportunity for 22 workers of the Abuja Environmental Protection Board (AEPB), including engineers, scientists, technologists, technicians and others, to acquire skills and experience in the operation and maintenance of sewage treatment plant. There was a budgetary provision in the 2013 FCT Appropriation to fund the project.

    “The council awarded the contract in favour of Messrs S.C.C (Nigeria Limited) for N2,006,071,928.73, with a completion period of 20 months.”