Osuoza, Izeze Explain Reasons Behind Govt Upward Review Of Contract Sum

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Delta State Commissioner for Information, Dr. Ifeanyi Osuoza and his counterpart in the ministry of Works, Highways and Urban Roads, Comrade Reuben Izeze have explained that the reality of the prevailing economic situation in the country and additional scope of work were the reasons behind the upward review of some projects across the State, including the Ughelli-Asaba dualization road project.

They were flanked by the Chief Press Secretary to the Governor, Olorogun Sir. Festus Ahon.

The Information Commissioner, made the disclosure on Friday June 14, 2924, while briefing newsmen the outcome of major decisions reached at the State Executive Council (EXCO) meeting in Asaba, the State capital.

He said Exco gave approval for the upward review of the contract sum for the construction of roads in Effurun and Ekpan in Uwvie Local Government Area of the state, due to fluctuations in unit rate, change in scope resulting in additional works for maintenance, rehabilitation, reconstruction and construction of roads in the area.

Hear him: “We also approved the upward review for the construction of Stadium Road, Ugborodo in Warri South West Local Government Area due to increase in the cost of construction materials and equipment.

“Exco approved the upward review of the contract sum for the construction of phases l and ll of Jeremiah Street, Nwawolo Road/Franca Nkem Okolo Drive/Sir Obiora Obidigwe Street and a discharge drain to Ngozi Ebora Street, Okpanam in Oshimili South Local Government Area due to fluctuations in unit rate for the balance and additional works.

“We also approved the upward review of the contract sum for the balance and additional works for the completion of the dualisation of Ughelli/Asaba Road, sector A, kilometer 0+000 to 39+000 with spur to Oleh,” Dr. Osuoza added.

The Commissioner pointed out that approval was equally given for the upward review of the contract sum for the completion of Ogwashi-Uku to Asaba part of the Ughelli/Asaba Road dualisation, stressing that the state Exco, also, approved the completion of the dualisation of Ughelli – Asaba Road, Sector C 1, kilometer 92+000 to 117+000, Ossisa to Kwale Junction in Ogwashi-Uku.

He added that the State Exco approved the contract for the rehabilitation and asphalt over lay of Oviri Court, Eruiyen, Akugele, Ojedi/Adagbasa Road in Okpe Local Government Area.

On his part, Comrade Izeze, sai: “Exco approved the upward review due to fluctuation in unit prices, rates and of course additional scope of work. Now, that is the reason behind the approval.

“For figures that are above the approval limit of His Excellency, the governor, it will require Exco to approve such amount.

“And in this case, the figures were above the approval limit of His Excellency, the governor, therefore, it needed Exco to approve the upward review.

“Fluctuation in prices has been highlighted as the reason behind the upward review”, revealing that the original contract was awarded in 2007, “fluctuation in prices due to inflationary trends is exactly what has happened to that contract”.

Continuing, he said: “Of course, there is a bit of a hiccup with sector A due to the inability of the contractor handling it to meet up with his own part of the bargain.

“He apparently did not have the technical-know-how, so that contract was determined and re-awarded to another company.

“Sector C, also has such a challenge. The constructing firm that was engaged at the conception of the contract as you know also did not have capacity.

“After a couple of years, it was determined that the contractor will not be able to accomplish the job, so the project was determined, it was redesigned.

“Sector C1, specifically was redesigned to include a fresh new bridge and that bridge is on both sides that will carry the dual carriage way.

“Now, if you are familiar with that road, the part through which we are driving presently, not the new nor the part that is been constructed, sector C, from Ossissa to Ogwashi-Uku junction, you will know that, that part is completely gone now.

“So, as soon as the other lane is ready, we are going to divert all traffic from that lane down to the new Kane and 25km of that lane will have to be recompacted and re-asphalted, that alone is building the cost”.

He explained that the exact figures the contract has gulped since it was awarded till date and number of reviews it has experienced, “we can’t give you the exact figures right now without consulting the books but reasonably considering the rates as at today, and taking into consideration of history of this very important project, I think Delta State government under the leadership of Rt. Hon. Sheriff Oborevwori have been able to save the people if Delta State quite some money.

“I can tell you that within the range if N5 to N6 billion has been saved through His Excellency’s direct negotiation with the contracting firm to ensure that this contract moves forward and to ensure that it is completion”, he added.

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