The Federal Government is contemplating the cancellation of the proposed 4.2-kilometre second runway project at the Nnamdi Azikiwe International Airport, Abuja, following a staggering increase in contract costs......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
Aviation and Aerospace Minister Festus Keyamo (SAN) revealed that the contractor’s demand for N532 billion, a significant jump from the original N90 billion, has raised red flags, prompting the government to consider terminating the contract and initiating a fresh bidding process.
Keyamo, speaking in Abuja, described the contractor’s request for a N532 billion variation as “nothing but fraud.” He explained that the project, initially approved at N90 billion in 2023, had already received N30 billion in funding. The minister also disclosed that a N3.4 billion post-contract consultancy fee was paid to the contractor in May 2023.
“The contractor is demanding a contract variation of N532 billion from the original sum of N90 billion. To us in the ministry, this variation is fraudulent, leaving us with no option but to cancel the contract and call for fresh bids,” Keyamo stated.
The contract for the second runway was awarded to China Civil Engineering and Construction Corporation (CCECC) in 2009 during the administration of late President Umaru Yar’Adua. Initially estimated at N67 billion, the project’s cost was later revised to N92 billion. Between 2017 and 2022, the federal government allocated N65 billion in budgetary provisions for the project, though it remains unclear whether these funds were fully released.
Budgetary allocations for the project included N10 billion in 2017, N8 billion in 2018, N13 billion in 2019, N14 billion in 2021, and N20 billion in 2022. Despite these allocations, the project has faced repeated delays, with billions spent on consultancy fees and compensation payments for land acquisition.
In August 2023, the Ministry of Aviation and Aerospace confirmed that N825.8 million had been paid as compensation to the Jiwa community to facilitate the project’s takeoff. However, the project’s progress has been hampered by disputes over costs and delays in execution.
A top official in the Ministry of Aviation and Aerospace hinted that the federal government may suspend the contract following the initial payments made to the contractor. The official emphasized that the government is committed to ensuring transparency and accountability in the execution of public projects.
The potential cancellation of the contract underscores the challenges faced in delivering critical infrastructure projects in Nigeria. If the contract is revoked, the government will reopen the bidding process, seeking a more cost-effective and transparent solution to address the airport’s expansion needs.