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FG Sets 6 Months Target For 30km Benin-Lokoja Highway

by Tarkaa David
1 year ago
in News
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The federal government has approved the funding of 30km dualisation of the Benin-Lokoja highway under a tax credit scheme by the BUA Group to be completed within six months.
This is despite the N775Bn funding gap in the scheme for the construction of the road first awarded in 2012.

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Minister of works, Engr. David Umahi who disclosed this during a meeting with all the contractors handling the Benin- Lokoja federal highway and some stakeholders from the area said the project must be delivered in six months.
He disclosed that the project which is under the NNPCL tax credit scheme of N122bn has a funding gap of N775bn to complete.

Umahi said the ministry upon his assumption of duty took some steps to review the texture of the pavement of the project to conform to the new innovation introduced by Renewed Hope administration to ensure best standards and durability.

He said; “This project was first awarded in 2012 and later the last administration decided to review it. They reviewed it and dualized it. They also reviewed the project to N879bn but under NNPCL tax credit scheme the cost of the property is different from the commitment of NNPCL. NNPCL commitment was just 122bn and so there is a great problem. There is a funding gap of N775bn and I don’t see where that money is coming from. So presently we have over 2.7trn funding that project from NNPCL whereas NNPCL has a commitment of 2.58trn. We have a funding gap of 2.7trn to complete all NNPCL project”.

“I first went through the road in September, and when I went through it, I was very satisfied that BPP and the ministry did very fantastic work. But all I did was to keep the project but review the texture of the pavement. And so we allowed the existing carriageway to be on asphalt and then reviewed the new carriageway to be on concrete. Being satisfied, so we went through the process of notifying the BPP, and from there, we went to FEC, and graciously, FEC approved, and so we are in the process of signing an addendum to the contract.” “Mr. President has approved that BUA Group should do 30km of the road in 3 locations multiplied by 2, that is 60km on Tax Credit.”

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He commended BUA Group for their interest to handle the construction of the 30 km carriageway under the scheme.

He added that the intervention was targeted at the critical sections of the road as already isolated when he last visited the Benin- Lokoja road.


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