The Nation Newspaper

Tag: projects

  • Dickson warns contractors against delaying projects

    BAYELSA State Governor Seriake Dickson has warned contractors against delaying their projects beyond the timeline agreed.

    Dickson, who gave the warning while inspecting projects over the weekend, insisted that projects must be completed timely and expeditiously.

    The governor, who was in the company of other top government officials, expressed satisfaction with the pace of work on most of the projects, while assuring that the onsite inspection was to ensure that the jobs were executed according to specifications.

    Dickson visited the ongoing construction of the governor and deputy governors’ office complex, government house clinic, new secretariat annexes, modern police officers’ mess, and the state archives, museum and language centre.

    He also toured the Gloryland Cultural Centre, pharmaceutical storage and distribution complex, ring road project, Elebele and flyover bridge project.

    Dickson said he was particularly impressed with the pace of ongoing reconstruction of the GloryLand Cultural Centre.

    He said he was excited at the quality of new sculptural work designed to enhance the aesthetics of the events centre.

    But he ordered that the stage and some parts of the edifice should be redesigned to make them world-class.

    He directed the Commissioner for State Capital Development, Mr. Zuwa Konugha, to liaise with his Culture and Ijaw National Affairs counterpart to adorn the city with more artifacts portraying Ijaw culture and values.

    The governor also directed the Commissioner for Works and Infrastructure, Mr. Lawrence Ewrudjakpo, to ensure the construction of a befitting road to link the archives, museum and language centre.

  • VCs lobby Suswam Committee over projects

    VCs lobby Suswam Committee over projects

    SOME vice chancellors of the Federal Government-owned universities are lobbying members of the University Needs Implementation Committee headed by Governor Gabriel Suswam in the bid to get the favour of the committee in the sighting of projects.

    The committee was recently set up by government to identify priority projects for each federal university with a view to addressing the lack of infrastructure in the ivory towers.

    Sources disclosed that shortly after the committee was inaugurated by the Secretary to the Government of the Federation, Chief Anyim Pius Anyim, about two weeks, some of the VCs immediately began to reach out to some members of the committee on the need to consider their universities under the first phase of these project allocation.

    About N6 billion has been earmarked for the first phase of the programme, with one federal university in each of the six geo-political zones to be considered.

    Mostly involved in the lobby, according to sources, are VCs in zones where there are two or more federal universities. They include the South West, which boasts of the University of Ibadan, University of Lagos, Obafemi Awolowo University, Ile-Ife, Federal University of Agriculture, Abeokuta, Federal University of Science and Technology, Akure, and the new Federal University in Oye Ekiti.

    In the South East are the University of Nigeria, Nsukka, Nnamdi Azikwe University, Awka, Anambra State and the Federal University of Agriculture, Umuduke, Abia State.

    Sources revealed that while the VCs of the first, second and third generation of federal universities are claiming that their institutions should be considered first, their counterparts in the new universities set up by the current administration are said to have argued that their institutions’ newness and lack of basic structures, among other reasons, are enough to be accorded priority by the Suswam committee.

    Though the modalities on the selection of the universities that will emerge as the first set of beneficiaries are still being worked out, sources revealed that the VCs are not leaving anything to chance, including reaching out to top government officials, to influence the decision of the committee in favour of their institutions.

     

     

     

     

     

  • NEXIM’s $60m Sealink Projects to create jobs

    In line with the Federal Government’s Transformation Agenda, the Nigerian Export Import Bank (NEXIM) said the new Sealink Projects billed to take off next year, will create and sustain more jobs for Nigerians as the Economic Community of West African States (ECOWAS) markets become one and Nigeria’s products and services brought to the world. TOBA AGBOOLA reports.

     

     

    • Ship loaded with containers at the Apapa port in Lagos

    DESPITE the commendable increase in trade among African nations in  recent years, there have been growing concerns over the barriers to effective trade, job creation, especially among Economic Community of West African States (ECOWAS) member nations.

    The establishment of the Sealink Project attempts to address the challenges of excessive transit time and lack of adequate transportation infrastructure among states in West and Central Africa, thereby creating jobs through improved trade flows and free movement of goods, people and services.

    Speaking with The Nation, the Managing Director, NEXIM Bank, Mr Robert Orya, said the Sealink Project is a major step in deepening trade within the ECOWAS sub-region and a significant step in enhancing the current trade flows of the ECOWAS member states to create jobs. Other benefits according to him, are to promote increased trade flows and opportunities for the people, considering the huge capital flight from the region through the absence of a sea trade infrastructure.

    Orya explained that by the time the project is fully on ground, it will encourage and enhance Small and Medium Enterprises (SME) operators’ bussinesses because there will be market for their products outside the country

    The project, which is in conjunction with the Federation of West African Chambers of Commerce and Industry (FEWACCI), is expected to commence next year. It is envisaged that the freight and passenger project, when completed would have the following ports of call: Freetown-Conakry-Bissau-Banjul-Dakar; Cotonou-Calabar-Douala-Libreville and Libreville-Dakar

    Orya said the funding requirement for the regional project is $60 million, adding that the project is in line with the Transformation Agenda of the Government, which projects investments in roads, railways, inland waterways, ports and airports development in collaboration with various stakeholders to evolve a multimodal, integrated land sustainable transport system. Emphasis will be on rail and waterways, through an effective Public-Private Partnership (PPP) arrangement.

    He noted the various efforts by the regional body in the past to promote trade, particularly the approval of the protocol for free movement of goods and services as well as the right of establishments. He said NEXIM bank’s vision was to help provide an efficient transportation system to facilitate economic growth and intra-regional trade flows.

    He said: “To move goods from one point to another within the region, it should take only three days. But, currently it takes about 60 days and at a very high cost, because the consignment has to get to Europe first, before a trans-shipment is done to West Africa.

    “A Sealink Project is a major step in deepening trade within ECOWAS sub-region and a significant step in enhancing the current trade flows of the ECOWAS member states, promote increased trade flows as well as create jobs and other opportunities for the people, considering the huge capital flight from the region through the absence of a sea trade infrastructure.”

    According to him, the project aims to create synergy and ensure an even and nation-wide distribution of gains from the administration’s investments in the key sectors, termed ‘main growth drivers’. This includes the manufacturing, agriculture, solid minerals, manufacturing, services, trade and commerce.

    He said: “Affirmatively, the Sealink Project will take the gains of the Transformation Agenda beyond the shores of the country. It will immediately open up our shores and immensely contribute to Nigeria’s march to become the premier economy in Africa through creating a seamless export platform for movement of Nigeria’s manufactured/semi-processed goods, services, and personnel with a certainty to boost competitiveness and productivity across these sectors. Also, it will spur more private sector initiative and innovation, enhance the development of the key sectors’ value chain, create/sustain more Nigerian jobs as the ECOWAS Markets become one and Nigeria’s products and services are brought to the world.”

    He identified the need to develop transport infrastructure in the sub-region to boost trade.

    “For instance, it takes about six days to transport goods by road from Nigeria to Ghana, while it takes about 60 days to transport the same goods by sea, to the same destination. As a result, stakeholders endorsed the initiative and role of NEXIM in promoting the Sealink Project. Goods moved by sea from Nigeria to Ghana, first go to Europe before going to Ghana because there are no cargo ships operating within the sub-region; a development, which analysts say is capable of eroding profit margins of export trade credit seekers.

    He disclosed that already, NEXIM has set up a company called Sealink Promotional Company, with a seed capital of $1.5million (about N237million) as a Special Purpose Vehicle (SPV) to raise the money. The company (Sealink Promotional Company), according to Orya, has commenced operations.

    He said FBN Capital has been appointed as the Issuing House for this offer, adding that in the next few weeks, the offer document would be issued.

    “In support of the project, the Nigerian Shippers Council (NSC) has provided a technical assistance grant to extend the feasibility studies for the Sealink Project to Equatorial Guinea, as well as Sao Tome and Principe,” Orya said.

    Giving the breakdown, Orya said that of the $60 million required, $36 million (or N5.6 billion) will be used to buy vessels, equipment, office space and other infrastructure, while $24 million about (N3.7 billion) is earmarked as working capital to cover general administrative cost.

    He said that NEXIM is spear heading the project because Nigeria is a dominant player in the region controlling 70 per cent of the 300 million markets.

    Nigeria’s Organised Private Sector (OPS) has lauded the project, describing it as a transportation solution to the congested road systems in the West and Central African link roads.

    The Vice President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Prince Billy Harry, lauded NEXIM Bank’s coming up with the Regional Sealink Project and the vigour with which the bank is pursuing its realisation.

    He also agrees that the ECOWAS market is huge and has not been fully tapped as a result of logistical challenges being faced in movement of goods and persons, especially due to the absence of a direct shipping line for the West and Central African corridor.

    “As the apex business association in Nigeria, NACCIMA is supporting the setting up of the shipping company as we did during the establishment of Ecobank Transnational which has become a household name in all the West African states and beyond. We would like to also stress the need for chieftains of industry here present to take ample opportunity by participating in the raising of the $36 million that would form the equity capital for the setting up of the transnational shipping company,” Harry said.

    Recently, the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala said the Sealink Project is of vital importance both to the Nigerian government and the West African sub region.

    She said: “The sealink is of strong interest to us. You know we already have the Nigerian Cameroun road that has just been done and we are looking to more of such.

    “Within the sub region, we are doing this sealink project so that we can trade along the West African coast and Nigeria is taking the lead with the NEXIM Bank to work on this and we hope the others will all come on board.”

    She said there are very many critical projects, but financing is not easy to come by as the continent would need upwards of $100 billion a year to meet its developmental needs.

    “That is what we need and even after you take account of all sources of income; we still need $50 billion to be able to meet our needs.

    “So we have to be very selective in terms of the most critical projects and this is the way we are going to be able to unlock the infrastructure bottle necks. It will take time, this is not what we can do overnight, but we have to be steady on it,” she said.

     

  • Sokoto earmarks over N1.6bn for projects

    Sokoto State has earmarked N772 million for the construction of a concrete-cast parameter walls to ensure better security at the Government House.

    The Commissioner for Information, AlhajiDanladiBako, stated this last week shortly after the state Executive Council meeting.

    He said the construction work, which will also include two befitting car parks on both sides of the entrance gate to the Government House,is expected to be completed in four months.

    Bako also disclosed that N85 million has been approved by the council for the construction, renovation and expansion of parts of Nagarta College, Sokoto.

    He explained: “The works include the rehabilitation of the Magajin Rafi House, seven classrooms destroyed by windstorm and expansion and conversion of workshop building to a befitting conference hall with appreciable seating capacity with a completion period of four months.”

    The Commissioner for Solid Mineral, DahiruMaishanu, said the administration has awarded contract for the rehabilitation and renovation of the dilapidated GSS Wauru in Gada Local Government of the state.

    According to him, the scope of work contracted at the sum of N78.9 million includes repairs and renovation of blocks of classrooms, eastern and northern sides of the school.

    Also for rehabilitation and expansion are: GSS More in Kware LG and Army Day Secondary School, Sokoto at the cost of N65.8 million and N120.3 million.

    The Commissioner for Health, Alhaji Ahmed Aliyu, said the state government had approved the construction of modern General Hospital each at Kware and Dange/Shuni local governments at the cost of N172.2 million respectively.

    According to him the contracts will be due for completion within nine months.

    Aliyu also disclosed that contract for the construction of a storey building with classrooms and library facilities at the College of Nursing and Midwifery, Sokoto has been awarded at the cost of N148.57 million.

    “The contract is expected to be completed in five months while work for the construction of male and female wards as well as borehole at Illela the General Hospital has been awarded by the state government at the cost of N118.17 million to be completed within a period of six months,” he stated.

  • ‘EU to spend N40b on water projects in 14 states’

    THE European Union (EU) has earmarked N40 billion for the provision of potable water in 14 states in the next six years.

    The EU Programme Manager, Dr Martin Mbonu, spoke at the inauguration of Water Supply and Sanitation a Sector Reform Programme II (WSSSRP2) in Dutse, the Jigawa State capital.

    He said the projects were part of the collaboration in water and sanitation projects between the EU and affected states.

    The programme manager explained that N16 billion had been released in the Phase Two of the Water Sanitation Reform Programme in six states: Kano, Jigawa, Yobe, Osun, Anambra and Cross River.

    Mbonu said: “EU earmarked 176 million Euros (equivalent of N40 billion) on various water projects in 14 states from 2012 till 2018.

    “About N12 billion will be spent on safe water intervention projects in five states in the Niger Delta region.”

    The programme manager also said N8 billion was set aside for the Phase Three of the water supply and sanitation sector reform in Adamawa, Ekiti and Plateau states.

    He explained that the remaining money would be used to fund non-governmental organisations (NGO) and community-based organisations in the water sector.

    Mbonu said the fund was meant to support various institutions in the water sector to ensure that the people get clean and safe water.

    He added that good water supply and sanitation would boost the health of the people.

    According to him, N17 billion was spent on Phase One of the WSSSRP projects in six states between 2005 and 2011.

  • 30 million to benefit from water projects

    •FG needs $14.5billion for transfer to Lake Chad Basin  

    No fewer than 30 million Nigerians will have access to water supply when the various reform programmes under implementation in 12 states are completed, the Minister of Water Resources, Mrs. Sarah Ochekpe, has assured.

    States to benefit are: Lagos, Cross River, Enugu, Kaduna, Ogun, Oyo, Taraba, Osun, Anambra, Kano, Jigawa and Yobe.

    Speaking with reporters in Abuja, Ochekpe said the projects are being carried out in collaboration with the Federal Ministry of Finance with support from the World Bank, European Commission, Africa Development Bank and Islamic Development Bank.

    She said: “The objective of the programme is to deliver sustainable water supply services to the citizens through the following: Rehabilita-tion/expansion of the water supply infrastructure and establishment of the enabling environment for sustaina-bility.”

    On the transfer of water to Lake Chad Basin, Ochekpe disclosed that $14.4 billion dollars is needed to begin the process.

    The Federal Government had expressed concerns over the receding waters in the Lake Chad Basin.

    This, the minister said, was as a result of “the effect of climate change.”

    She noted that all efforts are being made by member states to see that the transfer of water process is achieved.

    According to the minister: “Head of States of the Lake Chad Basin have been conferring with one another to convene a donor conference.

    “They have started a preliminary conference in Marseille, France last year . The chairman of the Summit of Head of States convened a site event on the issue of the support for the transfer of water.

    “Arrangements are being made to convene the actual conference of donors and former President Olusegun Obasanjo has been appointed as one of the champions for that process.”

     

  • Power firms seek funds to meet capital projects

    Power companies have intensified efforts to raise funds from the capital market as the emergent distribution and generation companies detail huge capital investment outlay that may be required to run competitive operations in post-privatisation period.

    Reliable capital market sources said many of the successor companies in the power sector privatisation programme have advanced discussions on raising funds from the capital market.

    According to a source, the companies have approached several financial advisers to liaise with financial institutions in Nigeria and correspondent international financial institutions to structure amenable capital issues for them.

    Sources indicated that the power distribution companies (discos) and power generating companies (gencos) may initially explore opportunities for new capital through private placements but there were strong indications they may also undertake general capital raising exercise within the medium term.

    They said gencos and discos were also in discussions with banks to work out modalities special financing arrangements that meet the peculiarities of the power sector.

    Economist and investment advisor, Sterling Capital Markets Limited, Mr Sewa Wusu, said the financial requirements of the power companies are enormous and that could stimulate a frenzy of capital market activities in the period ahead.

    “Their funding needs may likely induce another round of primary market awakening in terms of fund raising activities in the market. Some of them could foray into the domestic market for fresh funds and at the same time access the international capital markets for their funding needs,” Wusu said.

    He said the nature of the sector and potential of the power companies would make them attractive to investors noting that the Nigerian capital market has adequate depth to meet the long-term capital requirements of the companies.

    “Good instruments with commensurate returns will always attract investment in the market. The power companies are sold out by government to create the needed efficiency in the Nigerian power sector. Consumers will pay for it as far as they can get efficient service delivery. These are the exciting attractions for the power companies, which makes them attractive investment destination for the country, both for domestic and foreign investors,” Wusu said.

    He noted that the capital market as the market for long-term fund is best suited to the need of the power companies.

    The Nation had recently reported that banks’ chief executives, Governor and top officials of the Central Bank of Nigeria (CBN) and several experts had mulled a collaborative effort to develop amenable financing framework that would serve as financial industry’s master template for lending and funding of the Nigerian power sector.

    The strategic funding plan, which is being developed under the auspices of the Bankers’ Committee with active participation of top management of all banks, the Central Bank of Nigeria (CBN) and other key stakeholders, is a linchpin in the Bankers’ Committee’s programme for 2013, which largely focused on aligning the Nigerian banking system to provide adequate financing to meet the peculiarities of the power sector.

    Sources in the know of the funding strategy and banks’ collective initiatives indicated the funding strategy would provide the banking industry with a kind of master agreement or template that would foster best practices, remove inconsistency, ease access to funding and encourage regulator-operator understanding as banks move into the still-evolving power sector.

    While individual bank may adapt the funding strategy to suit its internal structure and terms, the template would provide overall guidelines, structures, terms and concepts among others for the entire industry.

    The CBN would sign on the banking industry funding strategy for power sector, which would give the template a quasi-regulatory status.

    The funding strategy would enable banks to provide well-structured finances to support investments in gas transmission pipelines, upstream gas developments, Liquified Natural Gas (LNG) and Liquified Petroleum Gas (LPG) plants, gas processing facilities, key infrastructure, port, real estate, pipe milling and fabrication yards and gas supply and gas transportation infrastructure among other.

  • Osun kicks off 30km road, bridge projects

    •Aregbesola builds 900km roads in 30 months

    Osun State Governor Rauf Aregbesola has kicked off the construction of a 30km Gbongan-Akoda road, named Omoluabi Motorway and the Adebisi Akande Trumpet Interchange Bridge in Gbongan, Ayedaade Local Government Area.

    The road project was awarded to RATCON Construction Company at N29.22 million and is to be completed in 18 months.

    It will have streetlights on the entire stretch, landscaping on the verges, lane marking and traffic signs.

    The Adebisi Akande Bridge would link the Ibadan-Ile-Ife Expressway with Osun State through Gbongan.

    Aregbesola said Osun would soon boast of the best road network in Nigeria.

    He said good roads would ease transportation and speed up development.

    The governor said the former Peoples Democratic Party (PDP) administration’s record of 553kms of roads in almost eight years pales into insignificance when compared with the 513kms of “high quality roads” the Action Congress of Nigeria (ACN) has built in the last 24 months.

    He said: “Our assault on bad roads is massive. At the state level, work is ongoing on various road projects at varying stages of completion. These include the rehabilitation of 21 Osogbo township roads, 15 Ilesa township roads and 14 Ede township roads by direct labour.

    “Others are 20 intercity roads, totaling 319kms; 13 intra-city roads, totalling 79.46kms; rehabilitation of selected roads in six zones, totalling 74.1kms; eight roads inherited from the past administration, totaling 144.29kms, dualisation of the Osogbo-Kwara boundary road, totaling 43.37 kms and the Gbongan-Orileowu-Ijebu Igbo Road.”

    Aregbesola said at the beginning of this year, his administration began building 229km roads in local government areas.

    He said: “We are exploring and investing in other avenues, such as rail. Bad roads regrettably are responsible for many road accidents that claim lives and leave hitherto able-bodied individuals permanently incapacitated, an avoidable depletion of our valuable human resources.

    “Bad roads also have health cost, besides the possibility of road accidents. People are loath to travel on bad roads because of the possible challenge to their health after the trip. Good roads, on the other hand, will enhance economic and social activities, bring down the cost of goods and services and reduce thewear and tear on vehicles.”

    The governor said the roads are built with 50mm asphalt on stone base with concrete drainage, as against the old practice of cheap macadam overlay on weakly compacted earth and poor drainage provision.

    He said the Omoluabi Motorway and the Adebisi Akande Interchange Bridge, when completed, would last for more than 30 years and improve the safety and comfort of motorists and pedestrians.

    Special Adviser to the Governor on Works and Transport Sabitu Amudah said the administration has spent N92 billion on over 900kms of inter and intra-city roads.

    RATCON’s General Manager Dany Boumikhael said company will deliver the project promptly and according to the terms of the contract.

     

  • New drought, desertification control projects for 12 states

    The Ecological Fund Office (EFO)has approved a new drought and desertification control projects in 12 northern arid states.

    The states are: Adamawa, Gombe, Kano, Jigawa, Katsina, Kebbi, Zamfara, Sokoto, Kaduna, Bauchi, Yobe and Borno.

    The new project, which is expected to cost N480 million, is being executed by the Federal Ministry of Agriculture and Rural Development.

    A statement by the Fund’s Deputy Director, Press, Mr. Tolu Makinde, yesterday, in Abuja, stated the project was originally approved in 2006 to ameliorate drought and desertification in the 11 frontline states.

    According to him, the initial project, which should have been completed within 90 days, could not take off until it was revisited and re-scoped this year.

    The Permanent Secretary of EFO, Engineer Goni Sheikh, reminded contractors and consultants approved for the project that ecological problems are dynamic and seasonal with propensity to get worse if delayed or ignored.

    He said: “The best way to solve such problems is to promptly address them, else they fester and get worse. Work assiduously to ensure their early completion.”

    The Director of Drought and Desertification Control Department, EFO, Mr. Kole Oluwatuyi, advised all stakeholders to meet and agree on ways to move the project forward.

     

  • Fed Govt to revive 1,994 abandoned rural electrification projects

    The Minister of Power, Prof. Chinedu Nebo, has assured that the Federal Government will revive and complete about 1,994 rural electrification projects that were abandoned over the years.

    Nebo told reporters in Lagos that the abandoned projects would be completed before the tenure of the current administration ends.

    The minister was in Lagos to inaugurate three injection sub-stations built by the Ikeja Electricity Distribution Company.

    He said: “A total of 1,994 rural electrification projects that have been abandoned in the country over the years will now see the light of the day. President Goodluck Jonathan is working hard to ensure that all abandoned rural electrification projects are completed soonest.

    “It is on record that the rural electrification agency was moribund before Jonathan came on board. The agency has been scrapped. It was President Jonathan that revived the agency and pumped funds into it for effectiveness.

    “You will agree with me that most of the abandoned projects were at 90 per cent completion. This is the reason huge rural electrification projects have been pencilled down for completion.”

    The minister said there is no way the government could bring development and value to the rural areas without effective electricity.

    He added that electricity is key to farm produce and preservation in the rural.