News

October 31, 2011

73m Euros road contract: Senate summons FCT Minister, BPP DG

By Inalegwu Shaibu

ABUJA —THE Senate has summoned the Minister of the Federal Capital Territory, FCT, Senator Bala Mohammed and the Director General of Bureau of Public Procurement, BPP, Engr. Emeka Eze, to appear before it and explain why two road projects were awarded to foreign companies in euros.

Senate Committee on FCT on tour of road projects in Abuja uncovered that the Idu Industrial Area road project was awarded at 73 million Euros to Salini Nigeria Limited, besides another N23 billion for same project.

The Committee also questioned why the Gazape Lot 1 road project around Asokoro area of Abuja was awarded to Gilmore Nigeria Limited at 69 million Euros besides another N14 billion.

Although Managing Director of Salini, Dr. Piero Capatinio, explained that the Euros represented the foreign components of the contracts, the committee was, however, not satisfied with explanations.

Chairman of the Committee, Senator Smart Adeyemi, who questioned the award process said it was scandalous and unjustifiable for a contract to be awarded for road constructions in foreign currencies.

He said: “They are commendable projects that are needed towards improving the standard of our city Abuja. But more importantly, I have a strong reservation about the manner some of these contracts were awarded in time past. I see no justification, it is indefensible, inexplicable that when you are constructing a road, you talked about foreign components and you have dual system of payments that is they pay in naira and euro.

“To me that is very retrogressive, it is uneconomical it is not equally dignifying for a nation like Nigeria. More than half of the materials that are used are locally sourced.

If there is a need for them to bring in any material that is required in the course of constructing these roads, I think that they could equally be acquired through their payment in naira.”