*Traders on a part of the East-West road
By EMMA AMAIZE, Regional Editor, South-South
BRIEFING State House correspondents after the weekly Federal Executive Council, FEC, meeting presided over by President Goodluck Jonathan, Mr Labaran Maku, Minister of Information, who was joined by Zainab Ibrahim Kuchi, Minister of State, Niger Delta Affairs said those who designed the initial project failed to take into account the difficult terrain of the region and that for the project to meet the required standard, government had to review the entire road structure.
Consequently, he said the ministry had to take the project into the drawing board again for the redesign of the shoulders and the width to meet the required standard and it is expected to be completed by 2013.
Maku stated further that there was hardly any road or dam project that you give at the beginning that would not end up in review, adding that when the project was awarded in 2006, the cost by the original contractor, Julius Berger, was so much that government refused to touch it.
He explained that the dualization of the project “is a landmark intervention of the Federal Government on infrastructure in the Niger Delta region.”
The minister said: “The augmentation of the project became imperative to adequately complete East-West road project, which by its location in the oil industry zone, is an emerging heavily trafficked road in Nigeria which calls for a stable road pavement that is less prone to frequent failure and disruption of traffic flow.”
In attempt to justify the huge augmentation of the project, Kuchi said work would have stopped on the project by the end of August 2011 had the FEC not approved the request for the N106 billion augmentation of the project. She also blamed militancy, incessant rainfall in the region as well as budgetary constraints for the slow pace of work and denied that the government at any point in time abandoned the work.
The minister, however, failed to answer reporters’ questions on why those who designed the initial project have been left unpunished and allowed government to waste such huge amount of money on augmentation. Kuchi said the project, which was almost 40 per cent completed would create 2000 additional jobs when completed in line with the administration’s transformation agenda.
Breakdown of the cost of the three sections are: Warri (Delta) – Kaiama (Bayelsa)which was increased from N64 billion to N112 billion, Port Harcourt – Ahoada, in Rivers State, increased from the original contract sum of N29. 9 billion to N48 billion and Ahoada-Kaiama sub-section – increased from N44 billion to N84 billion, bringing the total sum to N245 billion from the original contract sum of N138. 9 billion.
Findings: From our findings, the contractors are on site, but not much is going on because of lack of funds. From the beginning of the Section 1 in Effurun – Agbarho – Ughelli, Setraco has done an appreciable work on the dual carriage way, but other parts of Section 1 and II are suffering.
As at Friday, December 2, Setraco workers were asphalting from Warri and busy fixing kerbs on the walkway, while earthwork was going on in other parts of the road.
Court injunction
In Ughelli, the company was working in some parts, but there is presently a court injunction obtained by a landlord, restraining the company from operating some 100 metres away from a building.
The house is reportedly obstructing construction, but the company could not go ahead, except the matter is resolved. A company source told Vanguard: “The minister had since been notified and he promised to look into the matter, but till now, the problem is still there. That is the problem we are having in Ughelli, which some people don’t know. All they said is that we are not working, but they don’t know the problem.”
On my way to Port-Harcourt, policemen were seen collecting money from motor cyclists. One of them was making a phone call, near the Nkoyo Ibori Children’s Referral Centre, Agbarho on the road, and at the same time, struggling to stop a motor-cyclist, who wanted to beat the checkpoint since he was making phone call.
After Ughelli, on the way to Port-Harcourt, Setraco has worked on the bridges and asphalted part of the road between Mbiama and Ahoada, but it was conspicuous that not much was going on. The construction companies, Setraco, Reynolds and Gitto have not pulled out, but they were marking time on the road, waiting for funds to continue with the project.
Port-Harcourt was simply locked at Choba end due to traffic congestion that Friday evening. There was no going forward or backward, as motorists, including this reporter, remained on a spot for more than five hours without movement. I was counting the potholes on the road and had counted up to 70 when I lost count.
On the stretch of the road, erosion had dug deep on several portions that seemed abandoned due to lack of funds, while weeds have overgrown some areas that had been initially surfaced with stone/gravel and sand-filled preparatory for asphalting.
At about 12.16 pm at Okogbe community, along the East -West Road, a driver was sighted sleeping in one bulldozer, as no work was going on. A trader, Chima Okpara, who told Vanguard that his brother’s house was among those marked for demolition on the road, said: “The pace of work on the road is very slow, the government is not serious”.
From Ahoada to Elele, the right side of the road from Bayelsa had been constructed, leaving the old lane, but at Rumuji, it was observed that traders were trading right on the newly constructed lane, which is not in use.
As a result of insecurity and abduction of its expatriate staff by Niger Delta militants, Julius Berger abandoned the project, which was re-awarded in 2009 to Setraco at the cost of N75 billion, but Okpara told Vanguard: “This job was faster when Julius Berger was handling it.” But, a considerable percentage of the 18 bridges on the Delta to Rivers end of the 87 km road had been done by Setraco.
Earth moving equipment
On the Port-Harcourt to Eket, Akwa-Ibom axis of the East-West road, RCC has not done badly on Section 3 of the road. Its earth-moving equipment was busy and a good portion of the road had been asphalted. Italian firm, GCC is also crawling on Section 4, Eket to Oron axis of the East -West road, valued at N26 billion. It took a threat from a former minister that its contract would be terminated if it did not asphalt at least 10 km of the 50 km road for it to sit tight.
Construction firms to cut down staff: Vanguard gathered on good authority that owing to lack of funds to maintain workers, Setraco may downsize its staff strength from 700 to 300 in the next few months.
A staff told Vanguard: “We are sourcing for funds, including borrowing from banks to execute this project, but nothing has come out of government even when the contract was reviewed upwards in August. Unlike before when the company does not go on break during the Christmas and New Year activities, we will go on break, this year, even if not all the sections.”
Legal officer/Public Relations Officer of Setraco, Edmund Ekee Esq., however, told Vanguard on phone: “If you drive from Warri to Port Harcourt, you will see our men working. It is not true that we have abandoned the project.”
Construction firms taciturn on fund challenge: Curiously, it was discovered that because of the fear of losing their contracts, the contractors were not ready to speak out on the problems they are facing. None of the Setraco, RCC and GCC officials met by Vanguard agreed to speak on record on their challenges. It was like squeezing water out of stone to get two to three of them to make comments off record.
Before the exit, last year, of the former Minister of Niger-Delta, Ufot Ekaette, the contractors promised to expedite action on the project, saying work was slowed down because of militancy, but since this year, militants were not known to have disturbed them, yet the work is not moving fast.
In fact, at all the places Vanguard saw workers of the construction companies working; there were armed soldiers with them to provide security.
As substantive Minister of Niger-Delta, Elder Orubebe had inspected the pace of work on the road, which is not satisfactory to the people of the region, but he could not be immediately accessed for his views, though he reportedly invited the three contractors to Abuja for a meeting after his tour. Orubebe said: “We have talked with them frankly. We told them our expectations and the expectations of the Niger Delta people on this road.”
But in reality, the expectations that Orubebe was talking about appear not to have been backed with money to actualize the vision and the promises by the contractors at his meeting with them to “fast track” and “fly the job” were mere political statements for the camera.
Vanguard learnt the construction firms started experiencing delicate financial problems early this year, when some funds supposed to be paid to them as part of last year’s outstanding debts were not paid and the money that was released, this year, is too small to cover jobs already done. Legal officer/public relations officer of Setraco, Ekee Esq. declined comments when he was asked pointedly by Vanguard if the cause of the delay on the project was because of non-payment by government.
2012 completion date not feasible
Managing Director of Setraco, Engr. Michael Hachenberg, told Vanguard in Abuja, last year that Section One, stretching from Warri to Kaiama, would be completed in 2012. He said: “We are assuring Nigerians that Section One will be delivered in 2012, if enough funds are provided and adequate budgetary allocation made.
“The contract for this section was awarded to our organization on July 18, 2006. Since the commencement of the project execution, we have continued with due diligence with the construction and to date we have achieved about 54 per cent physical accomplishment. We are fully mobilized on site and the present seemingly low activity on site is occasioned by the inclement weather condition.
“Section Two covering from Kaiama to Eleme Junction in Port-Harcourt was initially given to Julius Berger but the company had to pull out owing to the hostility of the militants. Contract for the dualization of Section Two of the East – West Highway Project, between Kaiama and Port Harcourt was awarded to our organisation in two separate awards after the project had been abandoned by the original contractor.
“Setraco Nigeria Limited is fully mobilised in the two subsections with full complements in plants and equipment and presently executing about 5,000.00m3 of earthwork daily including casting of beams for the bridges amidst the obvious odds within the operating environment.
Since we took over this job, six bridges have been completed, and with the level of our mobilization, and the sustenance of the amnesty granted by the Federal Government, the tempo of activities will obviously be more visible when the weather becomes clement.
“Without any prejudice to the foregoing, our achievements so far, in Sections I and II of the East – West Road Dualization Projects have been based on our total corporate commitment for high standards of performance to meet our clients’ needs. We shall not compromise on these principles.
“In general, the challenges posed by inadequate budgetary allocation for the project execution was the incontrovertible source of delay to the project realization. Now, with the creation of the Ministry of Niger Delta Affairs and the visible level of commitment of the government, we believe that the project will be handed over and completed before the year 2012 runs out.”
His GCG counterpart, Gitto Dominico, told the former minister, Ekaette: “This contact was awarded October 2006, but as explained to the Minister, we really started this project, January 2009 and the last payment we got from the former project supervisor – Ministry of Works – was given in December 2008. Apart from that there were a lot of issues on the project, problems like compensation, though this has been solved by the Ministry of Niger Delta.
Commitment to the project
From January 2009 we are happy now that many of those problems are behind us; the rain issue is also behind us. We are going to make this project to fly…like other projects we are handling in other parts, nothing has changed, we are the same company, it is just because of the number of problems we were faced with here but the new administration has been addressing them but what I can promise as Gitto and MD is that our commitment to this project is very high.”
Since then, government has not really addressed the funding challenge and that is what is making people to say it is not serious about the completion of the East – West project. “How can the Ministry of Niger-Delta and the Federal Government convince us that they are serious about the East-West road when money is not released to the contractors as and with the present condition of things, I know that the coastal road from South-South – Lagos is a pipedream,” Mr. Andrew Effiong told Vanguard in Uyo.
At a recent meeting of South-South governors in Port-Harcourt, Rivers State, which some of them flew by air, the governors appealed to the Federal Government to fast-track the construction of the coastal and the East – West road.
Well-to-do Nigerians and most oil companies officials hardly ply the East-West road because of the hazards posed to travellers. They board airplanes. On his way back to Warri, the reporter nearly lost his life when he ran into potholes that damaged the gear of his vehicle. His car was towed to Warri.
Misplaced hope! There was tremendous hope when President Jonathan came on board as people thought that his government would turn Niger-Delta to a huge construction site. So far, what the people are seeing on ground is miles apart from their expectations.
Expectations of the region
More than seven months into his administration as substantive president, people are becoming agitated whether Mr. President understands the expectations of the region from his government.
For instance, due to non-payment of outstanding debts, contractors handling the East – West had threatened to quit in the past, yet the Presidency is not taking it as a priority project. Chairman of the House of Representatives Committee on Niger-Delta, Hon. Olaka Nwogu revealed in Abuja, last year, which was before additional money was approved for the East – West project in August last year, that the contractors were requesting for a supplementary budget of N28bn to enable them complete the project on time.
As at then, he said Reynolds Construction Company, RCC, had been paid N5, 684,881,518.18 out of N35.6bn for the dualisation of the East – West Road (Section III) Port Harcourt from Eleme Junction to Eket in Akwa Ibom State.
Setraco Nigeria Limited was given a contract of N74, 806,197,097.37 for the dualisation of the East-West Road from Port Harcourt – Ahoada and Kaima – Ahoada as well as dualisation of East West Road from Warri – Kaiama (Section I and II) following the decision of Julius Berger to quit the Niger-Delta region. On its own part, Gitto Construction Company got a contract of N26bn for the dualisation of East – West Road (Section IV) from Eket – Oron in Akwa Ibom State.
Up till the time of this report, the contractors were still being owed outstanding debts, meaning that like the leopard, which does not change its spot, the Federal Government has not really changed from its tradition of late release of funds, which is the greatest challenge to the timely completion of the project.


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