Tag: Mike Onolememen

  • Lagos-Ibadan Expressway to  last for 50 years, says minister

    Lagos-Ibadan Expressway to last for 50 years, says minister

    The Minister of Works, Mr. Mike Onolememen and Reynolds Construction Company’s (RCC’s) chief engineer, Nader Yusuf, have said the Lagos-Ibadan Expressway will last 50 years when completed.

    They spoke yesterday at the inspection of the road by the minister.

    Onolememen said the asphalt used for the building of the road was an improved material, which would give the road a 50-year lifespan despite the heavy traffic.

    He added: “We have found out that the bitumen we used on this road before was not good enough to withstand the heavy traffic. We have designed an operation and maintenance strategy, which will take off immediately after the construction of the road. It will run for 25 years.

    “The usage of the asphalt will end the damage done by heavy trucks and we will not witness the destruction done by heavy trucks on the road again, because they are not using bitumen for the rehabilitation.

    “The Federal Government, through the Federal Ministry of Works and the ministry’s transaction adviser on infrastructure, has secured project amount initiative for the actualisation of the project.

    “This is besides the commitment of the Federal Government, which amounts to about N50 billion. The Private Finance Initiative (PFI), which is a way of funding critical infrastructure projects, is common in the United States of America and it is a novel funding mechanism in Nigeria, which is what we are implementing in the ministry. This is the first road, which will benefit from the PFI funding. What this means is that this road will be completed as scheduled. It will also be a model for our other projects.”

    Onolememen assured Nigerians that the road would not be concessioned to anybody.

    He said government had secured the N25 billion commitment for this year.

    The Works minister urged the Federal Road Safety Commission (FRSC) to be involved in the project, to ease traffic.

  • Fed Govt  to issue N100b bond to complete Lagos-Ibadan expressway

    Fed Govt to issue N100b bond to complete Lagos-Ibadan expressway

    The Federal Government said yesterday that it was ready to issue N100 billion road and infrastructure bond for the completion of the Lagos-Ibadan Expressway.

    Minister of Works Mike Onolememen spoke when he received the Ibrahim Mantu-led Peoples Democratic Party (PDP) Reloaded Committee in his office in Abuja.

    He told the committee that the bond is to enable early completion of the road.

    “Government has made commitment up to N50 billion for the construction of the Lagos-Ibadan Expressway, while N25 billion will be made available in 2014 and 2015.

    “This is after the mobilisation of the contractors last year by the Federal Government.

    “There are several government institutions, which are also putting up to N17 billion on that road to ensure its timely completion”, he said.

    Onolememen said the road project was not abandoned as people claimed, but that the ministry was working to deliver a good road to Nigerians.

    He added that the contract was revoked from the first Nigerian concessioner, who was awarded the contract in 2009, because he did not perform well.

    The minister said since the contract was re-awarded to Julius Berger and RCC, work on the roads had improved.

    “Federal Government terminated the first contract because the contractor did not do anything in three years, not even a kilometre, on the expressway.

    “In fact, since the contract of that road was re-awarded, work has been going on and people, who travelled on the route during the last Yuletide attested to this”, he said.

    Onolememen said the ministry would follow the ground norm of the Federal Highway Act to invest and deliver good arterial roads to Nigerians.

    He added that road is a very important infrastructure and about 95 per cent of Nigerians travel by roads, assuring that most roads would get better.

    Mantu, who led the committee to the ministry, said it was visiting and monitoring the projects carried out by the government.

    “In the last two months, we secretly constituted six zonal inspection committees, made up of our members to inspect all completed ongoing road projects.

    “We are shocked by the degree of progress made nationwide. This means the nation is getting value for its money”, he said.

    He applauded the minister for completing 2000km of 32 roads in two years.

    Minister of State for Works Bashir Yuguda thanked the committee for the commendation given to the ministry, saying it would propel them to do more than they are doing.

    The PDP Reloaded Committee decorated and presented a plaque to the minister.

     

  • FEC approves N42.69b road contracts

    The Federal Executive Council (FEC) on Wednesday approved road contracts worth N42.69 billion across the country.

    The Minister of Works, Mike Onolememen, disclosed this to State House correspondents after the FEC meeting presided over by President Goodluck Jonathan.

    The road projects, according to him, include rehabilitation of three federal roads in Kogi/Kwara, Bauchi/Plateau and Adamawa States and dualization of one federal road in Kano State.

    He said: “The Ilorin- Jebba (93.6km long single carriage way) in Kwara State is in favour of Messrs CGC Nigeria Limited in the sum of N14, 587,233, 292.17 with completion period of 24 months.”

    “Council also approved the award of contract for the rehabilitation of Ilorin-Omuaran-Kabba road in Kwara/Kogi States in the sum of N8, 217,373,106.17 with a completion period of 36 months.

    Contract for the dualization of Kano-Katsina road phase 1(Kano town at Dawanau roundabout Katsina State border in Kano State) in the sum of N14, 078,252,565.88 with a completion period of 30 months was also approved by the council.”

     

     

  • Outrageous variation

    Outrageous variation

    • Abuja-Lokoja road cost review from N42bn to N116bn is an example of how contracts are abused

    WE doubt whether the government can meet up with its developmental obligations the way it is going regarding contract variations. In a scandalous revelation before the Senate Ad-hoc Committee on Subsidy Reinvestment and Empowerment Programme (SURE-P), it was discovered that the Abuja-Lokoja highway contract initially awarded for N42 billion in 2006, has been re-valued to N116 billion, which translates to an unbelievable 170 per cent increase.

    The variation, ostensibly at the instance of the parties handling the project, has justifiably incurred the wrath of the committee that has promptly directed them to appear before it. The affected companies are: Reynolds Construction Company (RCC) Nigeria Limited, Dantata and Sawoe Nigeria Limited, Bulletin Construction Company and Gitto Construction Company Nigeria Limited. According to Abdul Ningi, the committee chairman, the firms must come forward to explain the “scandalous review of the Abuja-Lokoja road contract sum with over 170 per cent from 2006 to date.’’

    Also, Mike Onolememen, Minister of Works, after three summonses, and Gabriel Amuchi, Managing Director of the Federal Roads Maintenance Agency (FERMA), reluctantly appeared before the committee citing ‘technical deficiencies’ as responsible for the outrageous variation. We wonder what technical deficiencies could warrant such bizarre increase. The alibi that consultant’s mistake of not initially coming up with the requisite designs of the contract necessitated the variation is untenable. Why would a road contract of such magnitude not come with design? And who is that consultant? Are there sanctions for such incompetence or negligence? If yes, has that consultant been sanctioned? This kind of immoral official padding of contract costs is unacceptable.

    We acknowledge that reasonable variations in awarded contracts, especially in an unstable economy like Nigeria’s, is globally acceptable. Intervening situations such as inflationary trend, delayed payment of contract fees, high interest rates and unforeseen circumstances, among others, could compel the need for contract variation. But such variations should not be done wantonly. Such opportunity should not be deployed, as the current trend seems to suggest, to fleece the nation of its hard-earned money.

    Among several shocking revelations unearthed by the committee is that FERMA spent N1.3 billion last year alone on operational and labour cost, out of the N4 billion it got from the SURE-P for road maintenance and rehabilitation. We consider this absurd and unfortunate, especially because the Federal Ministry of Labour and Productivity had already engaged the same youths that FERMA said it engaged, under the same SURE-P arrangement.

    FERMA was also caught in curious duplicity web when it claimed to have procured, this year, some equipment that were already catered for in its 2012 budget. This, in our view, is criminal project recycling and unwarranted waste of scarce public funds.

    SURE-P is fast becoming a conduit pipe for defrauding the state. More worrisome is that over N178 billion of the programme’s money released between 2012 and 2013 for the construction of the Abuja-Abaji-Lokoja road, Kano road, Maiduguri road, Enugu-Onitsha road, the Benin-Shagamu-Ore road, the Second Niger Bridge and the Oweto Bridge, linking Benue and Nasarawa states, has not yielded the desired results.

    The nation is fast becoming a territory of financial tittle-tattle. We decry the prevailing situation of indefensible contract variations and superfluous duplication of jobs by government agencies just to rip off the country. Any nation craving for infrastructural development cannot achieve that goal in the face of such scandalous project variations by seemingly uncontrollable overnment officials.

  • Contract sum jumps from N42b to N116b

    Contract sum jumps from N42b to N116b

    Senators summon firms

    The Senate Ad-hoc Committee on Subsidy Reinvestment and Empowerment Programme (SURE-P) decried yesterday a situation where the Abuja-Lokoja highway contract awarded for N42billion in 2006 has risen to N116billion (about 170 per cent).

    The committee summoned the management of four firms handling the project to appear before it.

    Committee Chairman Abdul Ningi gave the directive when Minister of Works Mike Onolememen and the Managing Director of the Federal Roads Maintenance Agency (FERMA), Mr. Gabriel Amuchi, appeared before the committee in Abuja.

    The four contractors are Reynolds Construction Company (RCC) Nigeria Limited, Dantata and Sawoe Nigeria Limited, Bulletin Construction Company and Gitto Construction Company Nigeria Limited.

    Ningi said the firms were being invited to explain the “scandalous review of the Abuja-Lokoja road contract sum with over 170 per cent from 2006 to date.

    He frowned at a situation where the Abuja, Abaji, Lokoja road, which was awarded at the sum of N42 billion in 2006, has been reviewed upwards to over N116 billion by the ministry to accommodate some technical deficiencies.

    He further expressed concern over the increasing cost of road construction in Nigeria, saying that what obtains in Nigeria is far beyond other countries in Africa.

    Minister of Works Mike Onolememen who appeared before the committee after three summons apologised to the legislators.

    The Minister said the SURE-P Board had so far spent over N178 billion on four major roads and two bridges across the country between 2012 and 2013.

    He listed the four roads and two bridges to include the Abuja-Abaji-Lokoja road, Kano road, Maiduguri road, Enugu-Onitsha road, the Benin-Shagamu-Ore road, the Second Niger Bridge and the Oweto bridge, linking Benue and Nasarawa states.

    According to the Minister, N85.5 billion was spent on the roads in 2012 from SURE-P, while the ministry paid N61billion. Also in 2013, N93.4 billion was expended on the roads, out of which over N67 billion was paid from SURE-P.

    On the over 170 per cent increase on the Abuja-Lokoja road, the Minister said the original contract was awarded without the requisite designs.

    He added that the consultant for the road project had been blacklisted by the ministry for not taking appropriate technicalities into consideration before approving the road design.

    Onolememen also said the construction work on these four major roads and two bridges have reached advanced stages, expressing hope that the Abuja, Abaji, Lokoja road would be inaugurated by the end of next year.

    He said that if all monies allocated to the ministry under the SURE-P is released, the Abuja-Lokoja highway project would be completed next year because most of the companies handling the job have reached 70 per cent completion.

    The lawmakers also grilled Amuchi over the allocation of N1.3 billion as operational and labour cost out of the N4 billion it got from the SURE-P programme for road maintenance and rehabilitation last year.

    Ningi lamented that facts before the panel suggest that FERMA has turned the SURE-P money into “Father Christmas” by spending N1 billion on labour cost in the name of paying 6000 youths it was said to have engaged as direct labourers.

    Amuchi had informed the panel that the agency pays each of the engaged youth the sum of N18,000 monthly.

    However, Ningi said it was not necessary since the Federal Ministry of Labour and Productivity had already engaged the youths under the same SURE-P arrangement.

    Ningi also directed the FERMA boss to submit details of all the beneficiaries of the programme to the committee within one week.

    The lawmakers also queried what they called duplication of projects by FERMA in 2012 and 2013 budgets as contained in their submissions.

    Although, Amuchi explained that FERMA purchased equipment with the money but the lawmakers said having procured similar tools in 2012, there was no need for the agency to repeat the same items in its 2013 budget.

  • SEC, stakeholders to brainstorm  on capital market financing

    SEC, stakeholders to brainstorm on capital market financing

    The Securities and Exchange Commission has said it will collaborate with the National Planning Commission to host an infrastructure roundtable aimed at finding remedy for Nigeria’s inadequate infrastructural stock.

    A statement by the Communications Adviser to the Director-General, SEC, Obi Adindu, said the roundtable would highlight the role of the capital market in Nigeria’s development and how to raise $360bn needed to solve the infrastructural deficit.

    According to the statement, the roundtable, scheduled to take place from August 5 to 6 in Lagos, will involve professionals from the public and private sectors.

    The Director-General, SEC, Ms. Arunma Oteh; the Minister of National Planning, Dr. Shamsudeen Usman; the Minister of Works, Mr. Mike Onolememen; the Minister of Transport, Senator Idris Umar; the Minister of Housing and Urban Development, Ms. Ama Pepple, and the Director-General, Bureau for Public Enterprises, Mr. Benjamin Dikki, as well as the Lagos State Commissioner for Economic Planning, Mr. Ben Akabueze, are all expected to speak at the event.

    While Usman will present the National infrastructure master plan at the event, the roundtable is also expected to witness a review of comparative global trends in resolving infrastructure challenge.

    The statement read in part, “The relevance of the capital markets in providing sustainable funding for the infrastructure needs which would have been given definition by the infrastructure ministers will be examined by a panel featuring largely principal officers of multilateral financial institutions such as the African Development Bank and International Finance Corporation.

    “Participants on this panel will include a representative each of the Rand Merchant Bank, Infrastructure Concessions Regulatory Commission, ARM Infrastructure Fund and Perchstone and Gray, an infrastructure finance specialist law firm.”

    In addition to this, capital market operators are also scheduled to discuss climatic and environmental factors which would encourage investment in infrastructure.

    The SEC added that the event would review legal issues and structuring and financing options.

  • Jonathan flags off reconstruction of Lagos – Ibadan highway Friday

    Jonathan flags off reconstruction of Lagos – Ibadan highway Friday

    The Minister of Works, Mr. Mike Onolememen, on Tuesday said President Goodluck Jonathan, would on Friday launch the reconstruction of the Lagos-Ibadan expressway.

    Onolememen announced the planned inauguration by the President at a meeting with a delegation of the Association of Luxury Bus Owners of Nigeria (ALBON) in Abuja.

    The News Agency of Nigeria recalls that the concession of the 178-kilometre road, which was granted Bi-Courtney Highway Services Limited, was earlier this year terminated by the Federal Government.

    The Government had alleged that the company failed to honour the terms of the concession agreement.

    A fresh contract for the reconstruction of the expressway was subsequently awarded to Julius Berger Nigeria Plc for the Lagos – Shagamu interchange end of the expressway.

    RCC Nigeria Limited is also expected to handle the Shagamu – Ibadan axis of the expressway.

    The minister said the project had been awarded and the government was ready to see it completed in record time.

    “The Lagos/Ibadan Expressway project as you know has been awarded and work will soon commence on it.

    “However, may I use this opportunity to let you know that President Goodluck Jonathan will inaugurate the reconstruction

     

  • Bi-Courtney experience won’t  deter us from PPP—Onolememen

    Bi-Courtney experience won’t deter us from PPP—Onolememen

    Minister of Works, Mike Onolememen, in this interview with our Deputy Editor, Nation’s Capital, Yomi Odunuga, and Correspondent, Dele Anofi, speaks on the remarkable improvement in the road sector among others. Excerpts:

    About a year-and-a-half ago, you were quite positive about your ability to transform the road sector, are you still positive two years into your tenure?

    For me it has been one-and-half-year of hard work because I was very optimistic about turning around the Ministry of Works and the road sector in Nigeria for the better. A year-and-a-half back, Nigerian roads were described as death traps and one-and-half-year on, clearly you can no longer describe our roads in those terms. Once again, Nigeria roads are looking like what they should look like. They are now looking like the roads of 20 years ago when they were first built and this is exactly what this administration has achieved in the road sector. For once, Nigerians are beginning to see the possibility these things can be done. We have been able to make tremendous progress in road development. For instance, we have completed 32 road projects. In fact, people have said that the Federal Ministry of Works in the past 15 years has never completed a road project but, in a very short time, we have completed 32 road projects that cut across the six geo-political zones of the country. In the South East, the Onitsha-Owerri road has been completed, as well as work from the Head Bridge that has been fully completed. We have been able to transform what was once a two-lane road at a time to about six lanes with the service line intact and all the erosion ravaged areas in that stretch of 3 kilometres have been fully recovered. In the South West, from Benin to Ore to Sagamu, we have done substantially well there. You will recall that one-and-half- years ago, it used to take people 10, 12 or 13 hours to Lagos from Benin but today in three hours you are in Lagos from Benin. That is much improvement from what it was before and on that alignment particularly from Benin to Ofosu, it is about the best road we have in this country. If you go to the North Central, we have a flagship to showcase, the Vom-Manchok road has been completed and it is a showpiece traversing rocky terrains. Then the Langtang-Shemdan road has also been completed. We have accelerated work on the Abuja-Lokoja road. We started by completing the Giri catchment. Today there is a flyover in Gwagwalada; the Gwagwalada new bridge has been completed as well as section 1 and section 2 that have met and joined at a point to be able to drive substantial kilometres of dual carriage way on that road today. Hopefully, by the first quarter of next year, that road will be fully completed from Abuja to Lokoja. Up North, we have been able to complete quite some project in the North East, the Kano Maiduguri road has recorded progress despite the security challenges in that particular axis. We have about five contractors working there being the singular longest dual carriage way we are embarking on, it is over 510 kilometres from Kano to Maiduguri. Each of the five contractors has lost engineers to the security challenges in that part of the country but we have engaged them continuously and we have been able to ensure that the projects are still very active. The Gombe Bypass, Gombe-Postikum road, the Yola Numan road are all completed. When you come to the North West you will discover that project like the Katsina-Daura road has been fully completed. Indeed we have quite a number of completed projects across the country. Of course, these are major road projects, but beyond the major ones, we have also embarked on aggressive road maintenance across the country. Before, it was difficult to drive from Enugu to Port Harcourt. But, since the last quarter of last year, we moved in maximally and within six weeks we brought back that road to the condition where people can now drive without stress. Other major reconstruction work on that axis is being procured as we speak. In the South-West, the Ife-Sekona road has been completed. In the economic melting down in the country, Lagos, we are not doing badly by completing the replacement of the eight defective joints on Third Mainland Bridge and maintenance of the bridge. We also moved into Lagos-Ibadan dual carriage way to make it motorable for the road users at the end of year and the proper reconstruction for the Lagos-Ibadan expressway will commence shortly.

    So what is delaying the award of contract for the reconstruction of a major road like the Lagos-Ibadan Expressway?

    We opened the bid last year and we have finally analysed the bid and it has gone to the Bureau of Public Procurement for Letter of no Objection. Once we receive Letter of No Objection from Bureau of Public Procurement, the project will be awarded and Nigerians will, once again, see contractors in full swing. One major change on that road is the redesign of that particular axis. For example, we plan to construct a flyover around the area where we have a number of churches which usually lead to bottleneck particularly around the Redeemed Church. We have now introduced a flyover around there to separate the traffic to the church and the thorough traffic that is traversing from Lagos to other states. That is going to solve the problem around the Redemption camp permanently. Beyond Ibadan, we have completed the section 1 from Ibadan to Oyo, that dual carriage way section has been completed and opened to traffic. Then, of course, from Oyo to Ogbomoso where one of our contractors, RCC, is currently working, work has also started there. The Ogbomoso to Ilorin road has been completed. Within the period under review, we were able to also maintain from Ilorin through Jebba-Mokwa up to Kaduna. As we speak, procurement is on-going for the major reconstruction of the Ilorin-Jebba-Mokwa road. All over the country, we have quite a number of success stories to tell in terms of development.

    What about the roads in the South-South?

    In the South-South, we have also done quite a number of roads there. The major economic roads there, for instance, the Refinery Road in Warri, the dualization of the Onne Port road in Rivers State have all been completed. Of course, the East-West road that people always look forward to on that axis is not part of the ministry’s portfolio, We have also been able to maintain the Benin-Ofosu road, Benin-Warri dual carriage way and the Benin-Warri and Benin-Asaba dual carriage ways. Beyond that, we are in collaboration with the Akwa Ibom State Government on the dualization from Ikot Ekpene to Aba and it is ongoing. Some of our other roads are the Calabar-Ugep road, part of the Pan African Highway, the roads from Ogoja to Ikom, Ikom to Ufom that borders the Cameroun are all in the South-South. Only recently, work also commenced on the Vandekeiya-Obudu cattle ranch road and we have quite a number of roads.

    You must have been lucky to access huge funds to carry out all the projects mentioned. How did you do it?

    Well, in a way, funding is still a challenge in the Federal Ministry of Works. However, we have embarked on major reform that will address that particular issue. What we call reform of the road sector. As we speak, we now have a draft bill for the road sector. About two months ago, the National Council on Privatisation approved the Road Sector Reform and the draft bill was also approved. Right now, they have been moved to the Office of the Attorney General of the Federation and Minister of Justice and after that it will be presented to the Federal Executive Council for consideration and approval. Once that approval is granted, it will now go to the National Assembly for enactment. Once that is achieved, we would have succeeded in changing the face of funding our projects. With that reform, we are going to see new institutional framework for road development because the reform will necessarily entail the establishment of a National Road Fund that will solve this funding problem in the road sector because it will close the funding gap for the road sector. This is because we will now have road sector funding and of course it is also going to bring into being the Federal Roads Authority so that road development programme can be fully institutionalised in our nation as it is obtainable in other parts of the world. That is in the offing but while that is going on, we cannot just fold our arms. We have to make the best use of our time. As at today, we have about 195 on-going projects in the road sector and there is no way we will be able to finish all that in the next two years. So we have to prioritise and that is why we are able to make sense out of the chaotic condition of roads in our country. So, to some extent, we have achieved some of the things we set out to achieve considering our portfolio spread around the six geo-political zones of this country. In the North-West for instance, the total road is about N255 billion, in the North Central it is about N262 billion, in the North East, it is about 332 billion, in the South-West, it is about N236 billion, in the South-East, it is about 150 billion and in the South-South it is about N159 billion. We have to strategise by giving priority to the arterial roads that link city to city which are truly inter-state and those roads that provide access to economic centres like seaport, airport, industrial areas and major areas across the country. So, that is the way we are prioritising our road development programmes and it has been yielding results. It is as a result of that prioritisation that we are also focusing on the Apapa-Oshodi Expressway because that provides access to the seaports. We are making sure and steady progress on that road. When we came in 2011, my first operation visit to a project was to that particular road and I met a completely flooded and demarcated road. In fact, those territories where the demarcations were, if you go there you will not believe that it is the same alignment because we have been able to substantially recover them. Today we are working on Ijesha bus stop. They are almost completing the trailer part and dedicated to Tin Can Island port. Once these projects are completed, we will be able to move over 400 trucks and tankers out of that road so that the road can truly become what it used to be.

    Nigerians have expressed the fear that, with all these road projects going on, a time will come when they will be asked to pay toll fares on some roads. How realistic is that fear?

    We do not expect the private partners to bring private sector fund to a road development project and then stop them from recouping their funds. The only way you recoup the investment on a PPP project is through tolling. Even at that, the tolls are reasonable to the extent that the people will be willing to pay because of the service they are enjoying. For private sector project like PPP project, you can’t run away from paying some kind of usual related charges. It is normal and that is the frame work all over the world so Nigeria cannot be an exception. However, what we are doing as a government is that, on government roads, you can attest to it that no tolls are being collected because the government is still trying to recover its roads from the present disrepair. Moreover, it is not fair to collect tolls on a bad road. Even as a Government, you cannot also collect tolls on a road when there is no alternative for people who may chose not to ply the roads. But when PPP is involved, where private funds are mobilised, there is no way tolls will not be collected. It is the right thing to do.

    With the experience the Federal Government had with Bi-Courtney, do you think that is the best way to go?

    All over the world, the PPP vehicle is being used to realise good development projects including the African continent. So, why should Nigerians think that because the PPP transaction with Bi-Courtney went awry, there will never be another PPP project in this country again? That is not right. There is no way the Bi-Courtney experience will affect PPP transactions in Nigeria. We have learnt a lot of lessons from that fiasco and the government has better capacity now to deliver PPP projects. Government has learnt from the past and at the time that particular transaction commenced in 2008/2009, clearly the government did not truly have the comprehensive knowledge and capacity to drive a PPP project because it has never been involved in one. However, since then, in terms of capacity building, the government has done a lot in order to be able to drive PPP projects. Don’t forget that it is for that purpose that the Infrastructure Concessioning Regulatory Commission was established in the first place, and I believe it has come of age. The ICRC has been able to regulate proper PPP transaction in our country today.

    You once vowed to restructure the ministry for effective delivery of set targets. Were you able to make the changes and how effective were the changes on the activities of the ministry?

    In fact, the ministry embarked on restructuring in 2011 and it is responsible for the success story we have today in the road sector. We discovered that having one big Director of Federal Highways who is domiciled in Abuja while directing the over 35,000 kilometres of federal roads in this country from his office can never be effective. This is because most times, being human, he will not be able to go through all those alignments. So, his effectiveness is called to question because he cannot continue to rely on officials who sometimes may not even pay visits to those projects until about three or six months and sometimes a year. What we did was to create a new project management structure by creating six regional Directorates of Federal Highways with the Directors located in each geo-political zone. For instance, the Director of Federal Highway, South-West has his office in Ibadan. From Ibadan, he moves to Lagos easily, he can move up to Ogbomoso, Lagos, Akure and others. So, he is well grounded on what is going on there and can, therefore, not be a stranger. It is the same thing with others and it is the root of the unusual progress we have made at the Ministry of Works in the one-and-half-years we are reviewing today. The changes in the new Department of Material Geo-technic and Quality Control have also helped in ensuring that issues that border on quality of works of contractors are now removed from the hands of those Zonal Directors who are on the field for checks and balances. It is very important for checks and balances. It has also proved very helpful in ensuring that contractors actually carried out our work the way they were designed and scope and the way the specification was put in black and white. That department is like the policing department in the Ministry because they can go to any ongoing work and direct for covered work to be opened. If they find anything unusual in the process, they will ensure that the correct thing is done with the full support of the office of the Minister.

    How far have you gone in the drive to convince contractors to adopt modern technology in road construction especially in dropping the use of kerosene in mixing bitumen?

    On that issue of cut back bitumen, it is no longer allowed with effect from January 2013. It is no longer acceptable on our projects in line with the decision made at National Council of Works in Lagos in April 2012. We are enforcing it. We are now using bitumen emulsion in place of cut back bitumen mixed with kerosene. This is because it is not environmentally-friendly. So we have no issue with that. We are implementing it right now. Beyond that, one of the new innovations we have put in place in our project management is to ensure that only permanent works now qualify for interim valuation in the Federal Ministry of Works. People may not understand the import of that particular policy. In the past, when a road contract is given to a contractor, he goes to site, clears it, bulldozes the place, he unearths a lot of earth work because as they say there is a lot of money in earth work and they get paid. After that they disappear. Then rain comes and washes away the earth work the contractors would have done. Then, after two or three years when the government has money and they want to go back to that project, they now find out they have to go all over again doing the earth work because the contractors could really claim that at the time they left the site it was intact. Now that it has been washed out by rain, the government will now have to pay for it again. Now what we do is, if it is only the earth work you do, we will no longer pay. You have to stabilise it and you have to do permanent work. In other words, after earth work you must have a firm base. After the earth work, you must have the soft base, that is, do the earthwork, then stone base then the soft base which people also call the base course. It is only at that point that we will now value and pay and that is saving the Government a lot of money. When I say a lot of money, if you realise that most of the augmentations that have been implemented in most projects, more than 40% of the augmented sum usually arise from wash out on projects and they run into billions of naira, then you will appreciate the effect of this policy. It will help the government to save a lot of money in the system and we have started implementing that. With effect from January this year, most certificates, if the work is not up to permanent nature that can go through my table here, the approval of payment is impossible. The initiative is also making contractors to be responsible because we are in an era of performance management. It is only in that way that we can truly track our progress.

  • Road construction portfolio hits  N1.3 trillion – Onolememen

    Road construction portfolio hits N1.3 trillion – Onolememen

    The Minister of Works, Architect Mike Onolememen, has disclosed that the estimated funding portfolio for about 195 on-going road projects across the country is N1.397 trillion.

    The projects are spread across the six geo-political zones covering 6,628 kilometres.

    He said with an outstanding commitment of N850 billion, it is clear that the yearly budgetary allocations from the Federal Government are grossly insufficient in funding road projects in the country.

    The minister, who made the disclosure at an interactive session in Abuja at the weekend, said ongoing efforts are geared towards fostering alternative sources of funding for road development.

    He said: “The Federal Ministry of Works has a total of 195 ongoing projects amounting to a portfolio of N1.397 trillion. As at today, we have about 195 on-going projects in the road sector and there is no way we will be able to finish all that in the next two years.

    “So we have to prioritise and that is why we are able to make sense out of the chaotic condition of roads in our country. So, to some extent, we have achieved some of the things we set out to achieve, considering our portfolio spread around the six geo-political zones of this country.”

    Giving a breakdown of the regional spread, the minister said: “In the North-West, the total road is about N255 billion. In the North Central, it is about N262 billion.

    “In the North East, it is about 332 billion. In the South-West, it is about N236 billion. In the South-East, it is about N150 billion and in the South-South it is about N159 billion.”

    He added: “We have to strategise by giving priority to the arterial roads that link city to city which are truly inter-state and those roads that provide access to economic centres like seaport, airport, industrial areas and major areas across the country.”

    He said the alternative sources of funding adopted by the ministry include borrowing from multilateral agencies, floating of road bonds, conventional public private partnership finance as well as viable gap funding.

    On borrowing from multilateral agencies, the minister said the World Bank has made available $330 million in its first phase funding of the projects, noting the reforms he carried out in the ministry on assumption of duties has continued to yield positive results.

    On road maintenance, Onolomemen noted that the Federal Road Maintenance Agency (FERMA) has been repositioned and equipped with “state of the art” mobile pothole patchers and its capacity enhanced for prompt intervention on federal roads.

    “A total of 1, 980 kilometres of road corridors have so far been maintained by the agency. And with FERMA’s zero-pothole policy and its preventive maintenance policy, coupled with the road surveillance campaign, many more corridors will be maintained in the next couple of months.”

    A breakdown of the road projects shows that that the North Central has 31 roads covering 1, 054 kilometres with a budget of N262.3 billion; North East has 30 projects covering 1, 461 kilometres with a budget of N332.9 billion while North West has 23 projects covering 1, 028 kilometres with a budget of N255.5 billion.

    Also, South-South has 34 projects covering 876 kilometres with a budget of N159.4 billion; South East has 40 projects covering 978 kilometres with a budget of N149.6; while South West has 37 projects covering 1, 230 kilometres with a budget of N236.9 billion.