2nd Niger Bridge: FG Approved N58bn Concession Contract in 2004

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2nd Niger Bridge: FG Approved N58bn Concession Contract in 2004

From Onyebuchi Ezigbo in Abuja, 08.10.2009

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It has emerged that a N58 billion concession contract was awarded by the immediate past regime of President Olusegun Obasanjo in 2004 in respect of the Second Niger Bridge project, contrary to the impression that no contract exists over the long-abandoned project.
The Minister of Works, Housing and Urban Development, Dr. Hassan Muhammad Lawal, was quoted during an inspection tour of the deteriorating Niger Bridge last year as saying that as far as the ministry was concerned, “the project does not exist in the strict sense of it, since there is no evidence of approval or agreement for the execution of the bridge project.”
But a source told THISDAY last night that there was ample evidence that the project was duly conceived and approved by the Obasanjo regime to the point of being flagged off.
He said there was evidence of approvals by the Federal Executive Council (FEC) under the Obasanjo-led administration in 2004 for the project.
Further investigations revealed that the then Minister of Transportation under Obasanjo regime had presented a memo to the FEC seeking approval for “the construc tion of the Second Bridge across River Niger in Anambra and Delta under the Public Private Partnership (PPP) scheme comprising the Federal Government, Anambra State Government, Delta State Government and private contributor, Messrs Gitto Costruzioni Generali Nigeria Limited, in the sum of N58,680,603,049.15 with a completion period of 36 months and a concession period of 30 years.
The council had in item 14 of the memo approved “the execution of the concession contract for the construction of the Second Niger Bridge across River Niger in favour of Messrs Gitto Costruzioni Generali (Nigeria) Limited in the sum of N58,680.603,049.15 but only as a partnership with the Federal, Anambra and Delta State governments with a completion period of 36 months and a concession period of 30 years.”
Another indication of government’s tacit approval of the project is the fact that the Federal Government allocated about N4 billion in the 2009 Appropriation Bill for the project, which was duly passed by the National Assembly.
The budgeted figure represents Federal Government’s contribution based on its 20 per cent equity stakes. Under the draft concession agreement for the project, the Federal Government was billed to pay 20 per cent of the total sum of the contract as part of its contribution which comes to about N12 billion.
Going by a three-year time-frame for the completion of the project, the N4 billion represents its annual contribution.
THISDAY also gathere d that the Minister of Works, Housing and Urban Development had written to invite the governors of Anambra and Delta States to chat a way-forward for the all-important project.
When contacted, Anambra State Governor Peter Obi acknowledged the receipt of the minister's letter of invitation for talks, saying the state government was very eager to participate in the efforts to resuscitate the project.
The governor, who spoke to THISDAY through his Special Assistant on Media, Mr. Udah, at the weekend, said the state was not happy about the long delay in the implementation of the bridge project, which has spanned well over five years.
"We are in receipt of the letter from the minister calling for discussion on the bridge project. We are ready to meet the minister to sort out the problem delaying the implementation of the Second River Niger Bridge. Our government is always eager to assist with anything that will bring about the development of the state," he said.