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Delta Assembly Okays Govt Quest On ISPO To Fidelity Bank

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…Adopts C’ttee report on Assembly Service laws.

Delta State House of Assembly on Wednesday approved a request of the state government to issue an irrevocable standing Payment order ( ISPO) to Fidelity Bank in respect of the remodeling of the Specialist Hospital Asaba.

The request was contained in a letter sent to the House by the state Acting Governor, Barr Kingsley Otuaro and was read by the Speaker, Sheriff Oborevwori at the floor of the House during plenary.

According to the letter, the Acting governor said that the state government originally awarded the contract for the remodeling of the Specialist Hospital Asaba to Deux Project limited at the sum of N2.
298billion

He said that during the course of the project execution, the initial contract sum was reviewed upwards due to price fluctuations and additional works amounting to N427.780Million adding that a contract for the Construction of the internal roads and parking lots within the hospital premises to the same contractor at the sum of N242.147 million.

Barr Kingsley Otuaro noted that due to the damaged hospital partial permeter Wall, Occasioned by the 2017 flood in Asaba metropolis,it became necessary for the state government to reconstruct the fence with concrete at the cost of N46.245 million bringing the total contract sum to N3.14billion

The letter further stated that the state government had already paid the contractor the sum of N1.949million leaving a balance of N1.64billion, adding that the State Executive Council ( Exco) at its fourth meeting held on Tuesday March 26,2019 ratified the governor’s approval for the completion of the Asaba Specialist Hospital project through Contract financing to be provided by Fidelity Bank as term loan facility of N1.64 billion.

The letter also stated that the project will be executed by open House property management Company limited,a sister company of Duex project limited adding that the purpose of the letter was to seek the authorization of the House for the state government to issue an appropriate ISPO in favour of Fidelity Bank for the full repayment of the facility amounting to N1.64 billion with the equal monthly installments of N143.7 million for a period of eight months.

Majority leader of the House, Tim Owhefere moved for the House to receive and approve the Acting Governor’s request, and it was supported by Peter Onwusanya and Alphonsus Ojo with the approval of the speaker, Sheriff Oborevwori.

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