FEDERAL MINISTRY OF POWER, WORKS & HOUSING

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19 September, 2018

Minister Decries The Deplorable State Of FHA Roads: Promises Government Intervention

The Honourable Minister of State II for Power, Works and Housing, Surv. Suleiman Hassan Zarma, mnis, has lamented the deplorable condition of road and drainage infrastructures at the Federal Housing Authority (FHA) estate, Lugbe, attributing it to critical failures of the planning authorities in time past in upgrading them, giving room to the flagrant abuse of planning regulations by residents.

The Minister stated this today in Abuja during an assessment tour of the infrastructural facilities at the estate along side with the Managing Director of Federal Housing Authority, Prof Mohammed Al-amin.

According to him, ‘’the typography of the estate was not fully taken into consideration at the planning and design stage, hence the reason for the hydraulic failures.’’ He added that though the facilities that were initially deployed, like the drainage system, maybe small and over stretched such that it cannot contain large volume of water especially during the flooding period.

Zarma said that the present administration, as part of its commitment to the citizenry, will however, not relent in upgrading of infrastructural services across the country to enhance and improve the living standards of Nigerians Federal Government owned estates.

Earlier, the Managing Director of the Federal Housing Authority, Prof. Mohammed Al-amin thanked the Federal Government and the ministry for massively investing in infrastructures across the country and maintaining the existing structures.

While conducting the Minister and journalists round the roads and other facilities in the estate, Al-amin stated that the essence of the visit is to upgrade the FHA settlement into an urban centre due to its proximity to the city centre and the different categories of civil servants living in the housing estate.

Speaking at the site of the inspection, the Chairman of the Residents Association, Mr Odelana Adesina thanked the Minister for creating time to visit the estate. He said the residents are glad that the visit by the Minister has given him the opportunity to have a  firsthand information about the deplorable state of the roads and solicited the support of government for the rehabilitation of the existing/major road as well as build alternative roads in and out of the estate for ease of movement by residents.

He also urged the government to assist the residents in the provision of other infrastructures such as hospitals, drainages, water supply, metering for electricity and improved security within the estate.

The Federal Housing Authority Estate in Lugbe was built some 30 years ago and currently accommodates over 70,000 different categories of federal civil servants working in the city centre.

Fashola Charges Quantity Surveyors To Educate The Public On Cost And Quality Of Infrastructural Delivery The Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, has charged the governing board of Quantity Surveyors Registration Board of Nigeria (QSRBN) to educate the public on the importance of cost and quality in the delivery of infrastructures across the nation. He stated this at the inauguration ceremony of the newly constituted board of Quantity Surveyors in Abuja. The Minister said it is imperative for the board to embark on the process of enlightening the public using more of simple and regular words devoid of professional terminologies which might not be understood by a layman. Fashola noted that the elites, which include professionals in the built environment have significant role to play in terms of the aggregate quality of life in the society. He added that the assumption of the cost of project delivery are sometimes faulty but with Quantity Surveyors, who are the custodian of information on effective costing of projects delivery, can lead the debate by informing the society on the process and importance. The Minister also urged the board to develop and intensify relationship with institutions of higher learning where Quantity Survey is offered as a course and ensure that the next generations of Quantity Surveyors are professionally trained in order to be gainfully employed and self reliance. In his remarks, the president of the board of Quantity Surveyors Registration Board of Nigeria, Mr.  Murtala  M.  Aliyu, FNIQS appreciated the enormity of responsibility, task ahead and the associated challenges. He added that the immediate past board under the leadership of his predecessor, Hussaini Dikko PPNIQS had done very well to upscale the role of the relevance, growth and development of the profession but however noted that this present board will surpass their achievements. Mr. Aliyu stated that to deal with the enormity of challenge facing the country, Quantity Surveyors should be part of the pre-budget input preparation in order to have a prudent and efficient budgeting. He added that this will bring about correct cost effective template in Nigeria. He assured the Minister that the newly inaugurated board will do their best in ensuring that ethical code and lay down rules and regulation in the profession is upheld with dignity and in accordance to best practices around the world.
14 June, 2017
Prospects For Incremental Power Brightens As Fashola Inspects AFAM Power Plants *  Calls for peace in the area as important precondition for successful completion of projects *  All of the turbines and equipment needed for the completion of Afam III are now in the country, says Fashola *  Assures Shell, other major gas suppliers that product supplied to the plant henceforth will be paid for Given the availability of sufficient gas to power it, the Afam Thermal Power Plant in Port Harcourt, Rivers State, will before December this year, deliver 340 Megawatts of electricity to the National Grid towards the consolidation of the Federal Government’s drive to achieve Incremental Power for the country. The Minister of Power, Works and Housing, Mr. Babatunde Fashola SAN, who disclosed this in Afam in the Oyigbo Local Government Area of the State at the weekend, said with the work on the 240MW capacity Afam III Plant at   advanced stages and the burnt transformer for the 100MW Afam 1V now repaired, the two should deliver a combined 340MW energy to the grid before the end of the year subject to the availability of sufficient gas to fire them. Interacting with newsmen after inspecting the Power Station, Fashola, who said all of the turbines and equipment needed for the completion of Afam III were already in the country, added that the only problems left included the provision of access roads and logistics while the burnt transformer that would evacuate the 100MW from Afam 1V had been repaired and in good condition with the turbine. The Minister, who noted that Government has been working at the Plants in the past 17 to 18 months to restore the place back to its optimum capacity, expressed delight at the progress of work assuring that before the end of the year, 340MW would be added to the National Grid from the facility. “That is part of our Incremental Power Initiative”, he said. He told the newsmen, “What we have behind us is the Afam III and that is the Fast Power programme in collaboration with General Electric to restore 240MW to that place. All of the turbines and equipment needed for that project is already in Nigeria. So the only challenge we have now is roads, logistics and a few other problems; those are the things I have come to assess here”. Noting that Afam 1V, “is the only surviving generation unit”, Fashola, who said the surviving Generation units 17 and 18 have a combined output of 100MW, added, however, that the power could not be evacuated due to the damaged transformer which, according to him, got burnt in January 2015. “That was what was handed over to the Buhari government. So we have worked, we have restored and we have replaced the transformer and it is ready to go”, the Minister said adding, “We are here to assess the progress of the work that we have been doing here in the past 17 to 18 months to get this place back to its optimum capacity. But we now have issues with gas“. On the steps taken by Government to solve the gas issue, the Minister, who said that the Buhari Government inherited a lot of debts owed to all the gas companies who, according to him, said they would no longer supply gas without payment, recalled that Government recently approved N701Billion under its Payment Assurance programme to ensure that henceforth all suppliers of gas to the nation’s power plants were paid. He disclosed, “So we are telling Shell to let us separate the previous debt and create a programme to deal with it under the Central Bank of Nigeria programme”, adding, “And now that we have a Payment Assurance programme, we are assuring them that every gas they supply to this place now will be paid for”. “We have already paid for power produced in January; we have got approval to pay for power produced in February because the bills come in arrears. So they are looking at that and they will come back to us; so hopefully we should add another 100MW to the grid from here (Afam 1V) very soon.” For Afam V, which, he said, was the last one to be built, Fashola said the plant could not be maintained for four to five years after it was built resulting in so many things being damaged inside it adding that Government was now trying to get it into procurement and fix that. Assuring that the project would be completed next year, the Minister added, “I think they both have 276MW combined; that is a lot of power again to the grid and that will happen over the next 12 to 15 or 16 months if we can start quickly”, pointing out that he was at the site to assess progress of work in order to deliver the project as soon as possible. Responding to a question as to how soon the facility would be restored to optimum power delivery, the Minister declared, “As soon as the gas issue is sorted out, Afam 1V, with the capacity to deliver 100MW behind you as soon as we sort out the gas issues; it is the 240MW Afam III behind me if we meet our deadline, we want to finish before December; that will give you 340MW.” “Then at the back there, Afam V, that is 276MW that will roll into next year; we can’t finish that this year. By December, we should get to 340MW; these are now engineering issues and time tabling and also, of course, continued peace. We have 100MW now that we can’t evacuate because there is no gas to fire it, we have fixed the problem which was a burnt transformer. It has been repaired; the turbine is good, the transformer is good, now we have to go and get fuel to fire the car”, he said. On the plan of Government for the implementation of the Economic Recovery and Growth Plan recently launched by the President as it concerns the Power Sector, Fashola declared, “Now the programme to deliver this is the Power Sector Recovery Programme which again was approved by the Federal Executive Council”, adding that the programme involved a lot of policies and actions including payments. “Again you see Government is beginning to implement some of it. The Payment Assurance Programme is one of them; my trip to Washington to negotiate with the World Bank is one of it, the constitution of Boards- the new Chairman Designate of NERC which is pending before Senate is part of this, the constitution of the Rural Electrification Agency’s management and board is part of it; so we are beginning to implement all of the actions and policies”, the Minister said. Describing the development of the Power Sector as a journey rather than an event, Fashola again declared, “If you are looking for an event, then you are not looking for power. We will get to many bus stops; good bus stops. One bus stop is 100MW behind you; another bus stop is 240MW behind me; another bus stop is 276MW somewhere behind the line. And we will do more of this”. Responding to a question on the Bonny Road project, Fashola, who assured that it was on the Government’s programme, pointed out that the partnership was on explaining that some issues with the Budget which had apparently delayed the project, had been resolved at a meeting with the leadership of the National Assembly to enable the Federal Government contribute its own counterpart funding with the Nigerian Liquefied Natural Gas (NLNG). “So we are working with the contractor; I still met the contractor last week. People should be patient; we will deliver on the road to Bonny. The contract hasn’t been awarded. We need to see the final framework when the contract is awarded and that won’t happen until we have a budget. We can’t award contract without a budget. Hopefully we should start this year”, he said. Earlier, in his opening remarks Fashola had called for peace in the area as an important precondition for successful completion of the Afam Power and other projects saying for people to leave their countries far away and come and build a facility that they could not take away in another country was a leap of faith. Explaining how it would benefit the community, Fashola said aside the economic benefit to the country, the first investors who experienced a peaceful and safe environment for their assets would spread the word round the investing and business world that the environment was peaceful and safe for investment and the communities would be the better for it. The Minister assured that the major gas supplier to the plant – Shell- would soon resume supply adding that he had a very intense discussion with the company over the modalities to henceforth pay for gas supplied and how to arrange for the payment of the backlog. He told members of the host communities, “I have spoken to Shell and explained that under the Payment Assurance programme they will now be paid for any gas supplied while government sequences the old debts and work out plans to pay them. I told them that they should not allow payment of the old debts to stand in the way of new transaction”. “I have had an extensive discussion with them. We cannot allow 100MW of electricity to stand idle. If 1MW can power as much as 200 to 250 homes, you can imagine what 100MW can do. That is the case I have had to share; they are responsive to that case, they will come back to me on the way forward, “ he said. On the demand for good roads, hospitals and schools by the host communities, the Minister pointed out the Federal Government has prioritised the roads based on those that carry heavy traffic and beneficial to more people hence the focus on the completion of the Enugu – Port Harcourt Highway traversing the five states of the South-East of the country. Noting that the Enugu- Port Harcourt Highway was another road that had fallen into disrepair for many years due to lack of maintenance, Fashola declared, “That is the Nigeria that this administration inherited and we are trying to change. So our focus first is on building the highways that even lead to Rivers State before we now start going into the heart of Rivers State”. He added, “But we will get there if we are allowed to systematically implement our plans”, adding that the challenge of resource allocation and resource mobilization has made it necessary to prioritise. “Those are the hard choices that we have to make and we have started by dealing first with the road that comes into Rivers State first, that connects Rivers State with other States in the South Eastern Nigeria so that more people can benefit and if you are patient I am sure it will happen”, he said. The Minister while noting that there is a procurement plan to fix the road that leads to the Afam facility added that it would be better to wait until the project was completed before working on the roads to avoid damaging them when the heavy equipment for the project would be brought in. As to the hospitals and schools, Fashola asked the communities to identify the sites to build and forward the survey plans to him promising to see what he could do to assist adding that it made “eminent common sense” that the people that were going to settle in the area would have families who would need the facilities. On allegation of ill-treatment, Fashola declared, “I don’t think any government sets out to deliberately ill-treat its people. It may not have responded as adequately as you want. Even in our own homes that we don’t always have what we ask for from our parents does not mean that they set out to ill-treat you. So, I think that the understanding of why those gaps exist is important in how we communicate it”. Giving a brief history of the Afam Power project, Fashola who said the privatisation of the Plant was not completed, added that the plant was developed in 1962, started life with 20MW, grew to almost 1,000MW but was now struggling to deliver only 100MW. “This is what the Buhari Administration met. Even Afam V that was built in 2001 worked for just a few years and collapsed. Those are the things that this administration is determined to change by a regime of maintenance, by a regime of professionalism”, he said adding that government intends to develop a programme of maintenance so as create jobs from there.  Also in his welcome remarks, the Member representing the Constituency in the House of State’s House of Assembly, Hon. Promise Chisom Dike expressed delight at the visit of the Minister, commending him for his commitment and dedication towards revamping the nation’s Power Sector. Praising the achievements so far recorded by the Minister, the Honourable Member declared, “I am delighted to say that after more than 50 years of electricity in this country, we are blessed as a community, as a people, to have you here at so short a notice. “This is an opportunity to meet with you first to say that the community is very happy with your efforts, your bold efforts in the Power Industry in this country. Personally, Honourable Minister, I have been following all the efforts you are making in terms of intervention funds to ensure that this time around we are going to have a sustainable power generation that would be sustained”, he said.
12 June, 2017
FG’s National Housing Programme To Achieve Affordability And Acceptability.......Fashola The Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola, SAN, has said that the on -going National Housing Programme is a new Housing Policy conceived by the present administration with the aim of achieving acceptability and affordability by Nigerians. The Housing policy is geared towards providing affordable housing for Nigerians in both private and public sectors. He said this in an interview on Sunrise Daily, Channels Television, while appraising his performance in the housing sector in the past two years of President Muhammadu Buhari’s administration. The Minister further noted that for houses to be appreciated by Nigerians, they must pass the test of acceptability because Nigeria is a country with multifaceted ethnic and cultural background and climatic conditions. What is acceptable to a Northerner may not be to a southerner. Fashola noted that the Ministry is currently constructing about 2,000 pilot scheme Housing Units in 33 States of the country with targeted beneficiaries within an income bracket of grade level 8 - 14 in both private and public sectors. He also disclosed that the Minister of State, Mustapha Baba Shehuri, had undergone inspection tour of houses under construction in the 33 States and expressed satisfaction at the work done so far, adding that some of the housing constructions are at the roofing and lintel stages. The Minister advised Nigerians to embrace and key into the concept of mortgages as a means of financing home ownership because that is the practice in other countries. He said the Federal Mortgage Bank of Nigeria (FMBN) and Federal Housing Authority (FHA) being Parastals of the Ministry    are alive to their responsibilities of meeting the housing needs of Nigerians with construction of Housing Estate across the nation.
1 June, 2017
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PUBLIC ANNOUNCEMENT
20 May, 2018

Multinational: Benin, Cote D’ivoire, Ghana, Nigeria And Togo And The Economic Community Of West African States (ECOWAS)

Study on the Abidjan – Lagos Corridor Highway Development Project

Notice for Expression of Interest

Recruitment Of A Consultant To Conduct A Corridor Economic & Spatial Development Initiative Scoping And Project Packaging Study For The Abidjan-Lagos Highway Corridor Highway Development Program

The ECOWAS Commission has received Grants from the African Development Fund (ADF) and the European Development Fund (through the African Investment Facility –AfIF) to cover the cost of studies on the Abidjan-Lagos Corridor Highway Development Project, and intends to use part of Grant amount to finance service Consultants Contract for Corridor Economic & Spatial Development Initiative (SDI) Scoping and Project Packaging Study for the Abidjan-Lagos Highway Corridor.

The services under this Contract mainly consist of: (i) defining the corridor’s zone of influence to show direct and indirect beneficiaries (populations, other economic activities, etc.) which the corridor affects and vice versa, using the appropriate technical methodology under the SDI concept; (ii) identifying and analyzing the significant developmental aspects of the various zones along the corridor; (iii) identifying a longlist of economic projects (trade, logistics, industry, etc) within the geographical zone of influence of the Corridor, that are worth developing as part of the multinational highway project to result in a holistic economic development corridor, (iii) data gathering, and scoping (shortlisting) of SDI projects; (iv) developing regulatory and institutional framework for the holistic development of the corridor as an economic development corridor; (v) perform economic and financial analysis of selected projects to determine the nature of investments required for further development and (vi) develop an Abidjan-Lagos corridor economic development investment & marketing plan.

Feasibility and Detailed Engineering Studies are to be conducted per the following lots to cover the entire corridor: (i) Lot 1: Abidjan (Cote d’Ivoire)-Takoradi (Ghana), 295.3 km; (ii) Lot 2: Takoradi-Apimanim  (Ghana)-Accra (Ghana)–Akanu/Noepe Border (Ghana), 466 km; and (iii) Lot 3: Akanu (Ghana)-Noepe (Togo)-Lome (Togo)-Agonmey Glozoun (Togo)-Athieme (Benin)-Cotonou (Benin)-Seme-Krake (Benin/Nigeria)-Lagos (Nigeria), 320.06 km.  All distances provided are indicative and could be more depending on the eventual confirmation of alignments by Member States. 

The overall duration of the Feasibility and Detailed Engineering technical studies is estimated at twenty seven (27) months for each lot and the Corridor Economic and Spatial Development Study shall cover the entire corridor for a period of twelve (12) Months with some interim outputs (impacts from shortlisted projects) that could be taken on board by the feasibility and detailed design Consultants.

The ECOWAS Commission invites Consultants (firms with proven experience in spatial development initiatives, economic corridor development, urban and land use planning, transport infrastructure engineering firms for large-scale infrastructure projects) to submit their candidacy for the services described above. Interested, eligible and qualified consultants must produce information on their ability and experience demonstrating that they are qualified for services of similar nature. The shortlisting criteria shall be: (a) general experience in Economic Corridor Development, urban planning and development services (Studies, Technical Assistance, Project Management,) over the last ten (10) years; (b) specific experience in the field of studies of spatial development and establishment of economic zones along multinational highway corridors during the last ten (10) years; (c) Specific experience in cross-border or multinational land-use planning over the past ten (10) years; (d) availability of key personnel (list, qualification, experiences); (e) logistical and equipment; (f) IT Resources and specialized software, etc. (g) capacity to produce reports and all other relevant documents on the study in English and French.

NB: Each reference will be summarized on a project sheet, and will be considered only if the candidate attaches supporting documents indicating the contact information of the contracting authorities so as to facilitate verification of the information provided: Excerpts of contract (inner cover page and page with the signatures) plus Attestation of good performance.

Consultants may form groups to increase their chances of qualification.

The eligibility criteria, the preparation of shortlist, and the selection procedure shall comply with the African Development Bank’s Procurement Framework for operation funded by the Bank Group as of October 2015 available on the Bank’s website: http://www.afdb.org. The selection procedure will be based on Quality Based Selection Method (QBS), and a shortlist of six (6) firms which present the best profiles shall be drawn up after the expression of interest. Also the firms that are part of an international network are to submit one expression of interest.

Interested consultants can obtain further information at the e-mail addresses mentioned below during working hours: 8:00 a.m. to 12:00 noon (local time) on working days: procurement@ecowas.int with copy to pgueye@ecowas.int; vtulay@ecowas.int; cappiah@ecowas.int ; deklu@ecowas.int ; sbangoura@ecowas.int

Expressions of interest must be delivered in a written form (one (1) signed original plus four (4) copies) in (person, or by registered mail) to the address below, not later than 14th June, 2018 at 11:00 a.m. (GMT+1), Nigerian Time, and must be clearly marked: “Studies on the Abidjan-Lagos Corridor Highway Development Project/Expression of Interest in Consulting Services for Corridor Economic and Spatial Development Initiatives Study”.

For delivery in person or by registered mail to:

Directorate, General Administration, Procurement Division
First (1st) Floor of the ECOWAS Commission Headquarters,
Plot 101, Yakubu Gowon Crescent,
Asokoro District, Abuja,
NIGERIA.

Requests for further information or clarification could be sent by e-mail:
Attention : Commissioner General Administration &Conference
Email : vtulay@ecowas.int

with copies to :

* sbangoura@ecowas.int
* procurement@ecowas.int
* cappiah@ecowas.int
* pgueye@ecowas.int
* deklu@ecowas.int

The working languages shall be English and French. The Expression of Interest will be submitted in English.

OTHER NEWS
15 August, 2018

Remarks By The Permanent Secretary, Federal Ministry Of Power, Works And Housing, (Works And Housing Sector), Mohammed Bukar, At The 24th National Council Meeting On Works, Held In Birnin-Kebbi, Kebbi State

Protocols,

I am pleased to welcome you to the 24th Meeting of the National Council on Works holding in Birnin-Kebbi, Kebbi State.

2. As you are aware, the theme of this year’s National Council Meeting is “Ensuring Value-for-Money in Nigerian Highways Development”. The theme is apt and timely, considering our collective resolve to address the challenges in road development in the country within available resources.

3. In order to ensure that this target is achieved, it has become necessary for all the critical stakeholders to consider and provide contemporary policies that will support the attainment of the above target.

4. It is quite instructive that the theme was carefully chosen to ensure prudent spending of available financial resources in Highways development in the country due to the huge investment governments at all levels are making in road development.

5. The Meeting is significant as it will afford us the desired opportunities to identify challenges in the highways sector and develop strategies towards addressing them.  We are therefore, expected to explore various realistic means of proper utilization of funds and other resources meant for road projects, to enable quick service delivery, which in turn will fast-track national growth and sustainability. May I also stress on the need to ensure that all our recommendations align with the objectives of the Economic Recovery and Growth Plan (ERGP) of 2017-2019 which focuses on restoring economic growth, ease of doing business, investing in our people and creating a competitive economy.  The achievement of these objectives largely lies on the availability of good road network across the country.

6. Distinguished delegates and officials, the timing of this meeting therefore, is very significant as it affords us the opportunity to think through and make necessary provisions in our various Budgets for the year 2019 and beyond as well as take necessary steps that will ensure money spent on roads impacts on the Nigerian economy, positively.

7. On this note, I once again welcome you all and wish you fruitful deliberations.

8. Thank you.

 

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SPEECHES
16 August, 2018

Ensuring Value For Money In Nigerian Highways Development Being Remarks By Babatunde Raji Fashola, San At The National Council On Works, Held In Kebbi

On behalf of the State Commissioners and other Members of Council, I express the appreciation of the Federal Government of Nigeria to the Government and People of Kebbi State for hosting our Council Meeting and for doing so under very hospitable circumstances, in Birnin Kebbi.

Apart from being the home of famous Emirates like Gwandu, Yauri, Zuru, Argungu to mention a few, Kebbi State has come to the centre stage in Nigeria’s developmental history, especially at this time when Governor Atiku Bagudu is providing visionary, developmental and progressive leadership.

Statesmen, not big men, as former Governors, former Chief Judges have rallied around their Governor and Government to pursue a common goal of development.

From Agriculture, to Roads, Housing to Power, whenever it is partnership for Development, Atiku Bagudu will be found making the strongest case for why Kebbi must be involved. This remarkable and inspiring leadership must be acknowledged.

It is in this environment of developmental focus that we converge for the 24th National Council for Works to discuss development around getting “Value for Money in Nigerian Highways”.

Ladies and gentlemen, I found this topic appealing to this Council because of some of the assumptions that have been made about Cost of Roads in Nigeria, the questions I have had to answer, posed by people who ought to know, and because I hope to generate a more informed conversation about the matter.

It is my expectation that in each State, we will be sufficiently interested to interrogate issues like the source of value, where it lies and how to get the best out of it.

Therefore, I would like to start by asking the question why Nigeria has bad roads after almost a decade of prolific receipts from oil boom when oil prices were at $100 per barrel.

The answer is partly because we did not invest our money in Roads in the way that the United Arab Emirates, Qatar, Saudi Arabia and Brazil, to mention a few oil-exporting countries, have done.

To the extent that Roads are assets that live for longer periods of time and deliver collective National Benefit in terms of movement of goods and services and contribution to the GDP, clearly, it is doubtful that we got optimum value for those oil incomes between 2007 and 2015.

In other words, instead of investing our oil receipts in Roads, and long-term assets, of infrastructure, we spent the money on recurrent items of expenditure.

This is clearly discernible from the Annual Federal Budgets of that era, where the maximum provision for Capital Expenditure struggled to exceed 20%, when they seldom went beyond the threshold of 15%; and what was ultimately released by way of cash was scarcely ever in excess of 50%.

The result of these, of course was that by 2015 when I took office, there were over 200 roads whose contract values were in excess of N2 trillion and for which payments had only cumulated to about N500 billion.

Some of these roads had been awarded for upwards of 10 (ten) years. Inadequate budget and funding had delayed their completion. Many sites had been abandoned, workers laid off, equipment grounded.

This was where the Buhari Government picked up. With significantly lower oil incomes, we got the contractors back to site one after the other. We raised the budget size from N4 Trillion to N6 Trillion in 2016 and increased capital spending to 30%; which was funded by borrowing to finance the deficit.

For those who wanted roads to be fixed and those who did not want the nation to borrow, there is no middle ground. You either borrow to invest in tomorrow’s infrastructure at today’s prices, or wait until you can do it tomorrow at tomorrow’s price.

Our reality today is that the roads that were awarded 10 years ago and were not funded then have to be funded at today’s prices of money, interest rates, and at today’s prices of cement, iron rod, laterite and labour wages.

Clearly, we lost not only the value of money not properly invested, we lost value in the cost of doing business without good roads. We lost value in productivity by men and machine that became redundant.

While we cannot recover what is lost, we must not lose what is ahead; in this regard, I am happy to say that the Buhari Government is investing wisely and sensibly in the infrastructure that will drive Nigeria’s tomorrow.

From Rail to Ports, Power and Roads, this administration is resolute in its determination to complete ongoing or abandoned projects. Today, there is no State in Nigeria where the Federal Government of Nigeria is not executing one Road Project.

Hon. Commissioner has confirmed in his address Roads being executed in Kebbi. He wants more , the Buhari Government is ready to do more. It is in your hands to bring him back.

Undoubtedly, we have done more with less. This is the meaning of value. But there are other challenges that we must work together to improve upon in order to remove avoidable costs from Road and related infrastructure development.

A) Land issues, compensation, and court cases compound the cost of construction.

B) Conflicts, security breaches, pose risks to construction workers, which escalates costs in many ways, such as insurance, payment of security personnel, delays to project completion, to mention a few;

C) The absence of uniform Public Sector Procurement Prices;

D) Proper project planning, development and supervision;

E) Post-construction maintenance of scheduled and unscheduled natures to achieve asset life cycle expectation and performance; ( Bridges – Tamburawa, Tatabu, Third Mainland, Niger Bridge, Koton Karfe , Ijora, Isaac Boro).

F) Dispute resolution mechanisms as a means of achieving cost efficiency in road construction and achieving value for money, must be interrogated;

G) Government Treasury Operations and Payment Systems, review and reform will contribute to achieving better value for money in Road Development Project.

H) Increasing local content in Nigeria Road Construction and implementing Presidential Order 5.

Ladies and Gentlemen, these are only some of the items of avoidable costs around which we should have a conversation and a resolution if we are to achieve better value for money.

Each one of them is a full subject of debate in itself.

It is my expectation that many sections of the construction industry will rise up to the challenges inherent in improving each of the areas I have highlighted.

I make myself ready to contribute and participate upon reasonable notice.

Thank you for listening and I wish us very fruitful deliberations.

Babatunde Raji Fashola, SAN
Honourable Minister of Power, Works, and Housing

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Photo News
13 September, 2018

FASHOLA AT THE NATIONAL WORKSHOP ON STRENGTHENING HEALTH RESEARCH CAPACITY IN ABUJA

Hon Minister of Power Works Housing and Chairman NIMR Research FoundationMr Babatunde FasholaSANright being welcomed byDirector GeneralCEO Nigerian Institute of Medical ResearchProf Babatunde Lawal Salakomiddle and Head International Operations Wellcome Trust United Kingdom Dr Simeon Kay left during theNational Workshop on Strengthening Health Research Capacity organized by the Nigerian Institute of Medical Research NIMR at the Sheraton Hotels Towers Abuja on Friday 7thSeptember 2018

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Power News
Photo News
31 August, 2018

INSPECTION OF DAMAGE KUDZUM BRIDGE AT SECTION CH 26 500 YOLA MUBI ROAD ADAMAWA

Inspection of damage Kudzum Bridge at Section CH 26 500 Yola Mubi Road Adamawa State by Senator Binta Masi Garba Engr Yemi Oguntominiyi Director Highway Construction and Rehabilitation Dr Famous Eseduwo Director Planning Research and Statistics Engr MR Muhammad Director HNE Engr Salihu A O Federal Controller Adamawa State and other staff of the Federal Ministry of Power Works and Housing on the 26th of August 2018

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