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High Cost : FG approves adjustments to contracts that commences in 2006

The FEC has approved adjustments to the contract amounts for projects that commenced in 2006 due to the inability to proceed further because of the fluctuating costs of construction materials.

Minister of Works, Dave Umah said: “The prices of construction materials, like in 2006 we should be expecting asphalt to cost about N2000 per meter square, and today’s cost is between N27,000 and N30,000 per meter square.

“The same thing goes with diesel; the same thing goes with cement. And so, some of these projects are stuck.

“One of such that lifted today was the dualisation of Kano-Maiduguri road, section four, Damaturu-Maiduguri, it was awarded in 2006. And it has stopped because the contracts can no longer carry it. But today is been argumented from N39bn.”

The maintenance of Pankshin-Gindiri Road in Pankshin, Plateau state, which was initially awarded in 2017, received a significant upgrade as its contract value was increased from N10 billion to N20 billion.

Umahi also highlighted the Mayo-Belewa-Jega-Kanya-Tungur road project in Adamawa state that was initially awarded in 2018. The cost has been adjusted from N21 billion to N43 billion to align with prevailing construction market rates.

“And then the last one is a road that is going from Yakasai-Badume-Damagum-Makin Zali in Kano state. This was awarded in January 2021 and it’s been documented from N12bn to N17bn.”

The minister mentioned that more than 1,000 roads will be subject to maintenance to ensure their longevity. He also noted that a majority of these projects were initiated by previous administrations.

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