* Seeks merger of  indigenous construction coys

By Favour Nnabugwu

Four contractors who got the contract for the dualisation of the Abuja/Lokoja road three year ago but abandoned it midway due to lack of funds from the Federal government, have been recalled. The contractors are expected to resume work on the road based on a fresh promise by the Federal government to release funds to enable them complete the project

Minister of Works, Mike Onolememen, an Architect, who made the promise while inspecting the road admitted the challenges faced by the construction companies. He however assured them that funds would be made available to enable them resume work immediately.

“The Federal government has started funding the dualization of this road; we will look at other creative funding models which the government can employ to bring this road to completion,” he said.

The Abuja/Lokoja dualisation project was awarded to four indigenous construction companies in March 2007 at sum of N42.4 billion with 30 months completion period but inadequate budgetary provisions in the last three years affected the completion of the road.

The four companies are Dantata & Sawoe Construction Company (Nig.) Limited which got the lot from International Airport road junction to Sheda Village, covering 42 kilometers at the sum of N11.2 billion; RCC Construction Company Limited which got the lot from Sheda Village to Abaji Junction, spanning 57 kilometers at N9.6billion; Bulletine Construction Co. Ltd got from Abaji to Kotonkarfi, approximately 49 kilometers at N9.7billion while Gitto Construzioni Generalli Limited is to complete the construction from Kotonkarfi to Lokoja, about 50 kilometers for N11.9billion.

“This road connects people to South-West, South-East and part of North-Central. It is very important to this country because most economic activities come through this road. We are therefore very determined to bring this road to completion during our tenure,” the Minister said.

Meanwhile, the Minister as advised local construction firms to consider merging their firms in order to boost their competitive advantage with foreign firms.

The advice came on the heels of government’s concern over the inadequacies of indigenous companies which lack the technical-no-how and the managerial capabilities to compete favourably with foreign companies in construction projects.

Onolememen who received the governing board of the Council for the Regulation of Engineering in Nigeria, COREN led by the body’s president, Engr Mustapha Bulama in his office enjoined small firms to merge so that they can become bigger and better positioned to compete with the foreign companies.

“What we find worrisome is that, in spite of the huge investment of government in construction works in this country, more than 80 percent of the projects are being undertaken by expatriates which means that the country continues to experience capital flight because the expatriates will repatriate the profits from the projects to their countries and that does not add value to the economy of this nation,” he noted.

The best way in which the government could help to maximise the participation of the local firms, is to have them merge and become bigger and stronger.