Minister of the Federal Capital Territory (FCT), Nyesom Wike has queried the agreement entered into by officials of the government in the N85billion affordable housing project in the Wasa area of Abuja Municipal Area Council (AMAC) in the FCT.
The minister who expressed disappointment during a project tour yesterday to Wasa community, queried why the Federal Capital Development Authority (FCDA) provides infrastructure, while the developers would build affordable housing and sell to the masses without any government benefit.
Wike said it would have been reasonable for the government to get 10 percent of proceeds after providing funding while the developers get 90 percent.
“Government provides land and infrastructure, then the private sector builds and makes money while the government makes nothing, who does that?
“This arrangement is not acceptable, the government can take, say, 10 percent, while the private sector takes 90 percent. The rate is equally not affordable for the masses.
We will look at all these. We will not award contracts for awarding sake,” he said.
The contract for the project was awarded in 2014 to Gilmor Construction Company at the cost of N28billion and was reviewed in 2018 to N85 billion. So far, N21 billion has been paid while N64 billion is outstanding.
The project has so far attained 24.5 percent progress after nine years.
The minister expressed disappointment that the contractor was foot-dragging on the project after receiving N21 billion initial payment, maintaining that henceforth award of contracts and completion of the ongoing projects would be reviewed to meet the financial reality.
Wike frowned at the review cost variation of the contract from N21 billion to N85 billion as well as the N8 million market price of each unit of the houses at completion, which was the initial projection when the contract was awarded in 2014.
The minister explained that the territory can no longer go ahead with an arrangement where the government will provide infrastructure only for contractors to build on the land, sell, and make money for themselves without leaving gain for the administration.
He also inspected road projects around EFCC national headquarters and office of Benchers intending to find solutions to the faults therein.
At Kabusa junction, while inspecting the Apo Gwarimpa road project, he declared that the administration cannot allow the growing of shanties in the territory.
“We will not allow shanties to take over Abuja. The Development Control Department has done well. We will now protect the place so that miscreants will not return to the place,” he said.
