By Jonathan Nda- Isaiah, Abuja
The federal government has approved the sum of N1.712 billion to clear debts owed contractors on the 75km Gurara pipeline contract from gurara Dam to lower Usuma dam.
This was disclosed by the minister of water resources, Suleiman Adamu after the Federal executive council meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa.
He said the contractor has been maintaining the pipeline since the project was completed in 2008 and there was no exit plan as such to take over the project.
He explained that the government negotiated with the contractor for a fee to be paid to him for the service he rendered over the last nine years .
The minister said they agreed that the money will be shared 50-50 between the ministry of Water Resources and the Ministry of Federal Capital Territory.
He said “Today we presented another memo which is complementary to the memo I presented last week on the settlement of the 75km Gurara pipeline contract from gurara Dam to lower Usuma dam.
“A three diameter pipeline.. Last week we got approval to engage a contractor for one year and to have a training contract with the contractor so that we can prepare to handover to the FCT and the Ministry the project.
“This memo that was considered today has to do with the backlog of payment. The contractor as you are aware has been maintaining the pipeline since the project was completed in 2008 and there was no exit plan as such to take over the project, the contractor didn’t want to leave the site and leave the pipeline unattended.
“He has maintaining the pipeline in the last nine years without any compensation and as part of our policy to tidy up loose ends pertaining to ongoing projects or completed projects, we decided to disengage the contractor to pay him off for his services and to take over full control of the pipeline,” he stated.
So the total amount is N1.712 billion over the course of nine years and the Ministry of Water Resources will pay fifty percent of that and the Federal Capital Territory will pay the remaining 50 percent and we all have made provisions for this money under the 2017 budget.
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