By stopping a staggering N64bn contract for the construction of a second runway at the Nnamdi Azikiwe International Airport, Abuja, recently, the nation’s lawmakers have saved the nation what would have been another huge drain on its resources. The House of Representatives, in the exercise of its oversight functions, promptly suspended the brazenly padded contract. The lawmakers found, to their dismay, that the N64bn earlier earmarked for the four-kilometre runway contract is enough to build two new airports. The House has thus asked the Federal Aviation Authority of Nigeria to halt the construction and await the outcome of its investigative hearing during which the International Civil Aviation Organisation will be invited to assess the project and its cost.


Aviation authorities say the runway is necessary to unburden the current airstrip. The legislators have, by their action, paved the way for another look at the contract with a view to seeking alternative way of executing the important project at a cost comparable to the global standards.


The Federal Executive Council had, in December 2009, approved the construction of the runway because the present one built 27 years ago had outlived its design and life span of 20 years. The analysis provided by the House indicates that, at the cost of N64bn, the runaway, if constructed, would have been the most expensive in the world. Under a competitive and transparent tendering process, the project should cost between N24bn and N26bn.


Comparatively, it has been revealed that Bucharest Airport in Romania recently had its runway installed for the equivalent of N17.5bn, while a similar construction reportedly cost N18bn in Thailand. Back home, a complete International Airport recently built by the Akwa Ibom State Government, with maintenance facilities and the country’s longest runway, reportedly cost N42bn.


Spending a whopping N64bn on a runway would have been another avoidable leakage. Funneling public funds into private pockets through inflated contracts has been the bane of the nation’s infrastructure development. The World Bank once rated the cost of contract execution in Nigeria as one of the highest in the world. While inaugurating the Presidential Projects Assessment Committee recently, Acting President Goodluck Jonathan told newsmen that petitions on inflated contracts and abandoned projects had flooded the seat of power. And despite committing about N1.5 trillion to road projects since 1979, many of the contracts were found to have been abandoned.


The aviation sector, too, has, over time, been mired in allegations of graft. For instance, the N19.5bn intervention fund released by the Olusegun Obasanjo administration in the wake of three successive air mishaps between 2005 and 2006 was allegedly misapplied, leading to the arrest and prosecution of two former ministers of aviation, Babalola Borishade and Femi Fani-Kayode, an Austrian contractor, George Eder, and the former Managing Director of the Nigerian Airspace Management Agency, Roland Iyayi.


NAMA, in June 2008, told the Senate Committee on Aviation probing the disbursement and application of the intervention fund that FAAN inflated the contract for the Safe Tower Project by N5.5bn.


Early in his tenure, Obasanjo had set up a probe panel headed by Justice Obiora Nwazota to investigate alleged $400 million scandal in the Nigeria Airways. Some officials were consequently indicted and ordered to refund millions of dollars.


It is however better to prevent such looting than wasting more money on probes after the deed had been done. This, indeed, is why the assemblymen should be commended for stopping the allegedly inflated runway contract. But the legislators must dig deeper to identify those who would have benefited from the padded contract. Did the contract go through the routine tendering process? If not, how was the due process bypassed? What happened to the Bureau of Public Procurement?


All those involved in bungling the process do not deserve to retain their public positions. They should be identified and punished. The House needs to be thorough and firm in this assignment. Members should not hesitate to expose and recommend for prosecution all those behind the Abuja runway contract scam.


The Economic and Financial Crimes Commission should be involved in getting to the root of the scandal. The runway project, owing to its importance, can be re-awarded to a new contractor at a reasonable cost after an open and competitive bidding process.


Above all, contract padding and other corrupt acts are mere symptoms of an opaque public contracting system. A freedom of information law is urgently required to infuse more transparency into the system. There is need for continued vigilance by the public to check the criminal culture of using contracts as a veritable means of corrupt self-enrichment.





ONLY IN NIGERIA,

I repeat. It can only happen in my country NIGERIA.!

I commend the representatives and encourage them to go d whole hog to fish out all beneficiaries and sanction them appropriately. I hope dis will not just end in talk talk.

The lawmakers found, to their dismay, that the N64bn earlier earmarked for the four-kilometre runway contract is enough to build two new airports

This well where everyone goes to draw water everytime without a care in the world for replenishment, wouldn't it dry up one day? What happens when it eventually dries up?

It should not end with mere stopping the contract, the officials involved should be brought to book.
What sort of thing is this? Na waooooo

Evidence that barbarians still hold sway in Nigeria.

Some Palms were omitted in the greasing process.

They will surely take precaution next time.

Airport runways have been known to cost more that N64B (about $425M),

"The bill for the third Sea-Tac Airport runway, already one of the most expensive public works projects in the region, could reach $1.18 billion (N177B) -- about 50 percent higher than what the project penciled out at four years ago and more than double its original price tag."
http://www.seattlepi.com/local/128118_runway25.asp

, but the issue here is whether we need a half a billion dollar runway at Abuja Airport - the answer is no. I have not checked the exact specifics of this runway compared to others as above for example, but what I believe they are trying to do here is build a runway that is fit for an airport with probably 30 times the current capacity or traffic of Abuja - which makes absolutely no commercial or even common sense. Obviously we know what the end game is.

The contractors and the government officials involved in these shaddy deal should be brought to face the law for attempted fraud.

This is just a tip of what is going on all the different government ministries. Maybe this got to public knowledge because enough palms were not greased. Billions of Naira belonging to the Nigerian tax-payers goes to private pockets on daily basis.


These "eat everything" attitude may only be happening in my country, NIGERIA!

Yes,  only in Nigeria   some interesting comparisons

In 2002 It cost Korea $265 million dollars to build a 66,422 capacity stadium for the 2001 Korea/Japan World Cup. in Naira terms that is N33,140,900,000 (Thirty-three Billion [/b]One Hundred and Forty Million Nine Hundred Thousand Naira using forex rates in 2002).
if we were to use [b]2003 [/b]dollar xchange rates it would amount to N34,317,500,000 ([b]Thirty-four Billion Three Hundred and Seventeen Million Five Hundred Thousand Naira)  

In 2003 [/b]it cost Nigeria $360 million dollars to build a 60,491 capacity stadium for the common-wealth games
that is approximately N45,025,200,000 (Forty-five Billion and Twenty-five Million Two Hundred Thousand Naira using $ Forex rate in 2003)

[b]Six years later in 2009 [/b]South African Constructs a [b]90,000 capacity stadium for the 2010 World Cup at the cost of $440 million dollars approx N55,030,800,000 (Fifty-five Billion and Thirty Million Eight Hundred Thousand Naira using $ Forex rate in 2003)


Our Chinese-born NigComSat-1 (RIP) costs $340 million dollars as well

So why is a N64 billion naira ($494,208,000 in 2003) causing so much anger among our people, we have kept quite this long, why are we complaining. This is one of the fruits of a nascent (finally found a place for that word) democracy Only in Nigeria  

Bros you know we have to import the sand and machinery from all over the world including the experts who will design the tarmac in his 7* hotel room in Dubai 

And Someone said that this can only Happen in a wonderland Called Nigeria. lol

barnabasj:

And Someone said that this can only Happen in a wonderland Called Nigeria.   lol   

Yes o! It can only happen in few places including NIGERIA.

Yes we can spend a staggering 62 billion on runways, that's not even too expensive, after all we are the Giant of Africa, it takes a lot to be a giant, including giant runways too.

Just about 2 months ago, we disbursed a stupendous 7 billion to construct the VP's lodge, its not even a big deal, and even all those are just official figures, not taking into consideration logistics involved.

and yes, we can forget about the schools for now, the buildings aren't really that old anyway, so we can still manage for another 100 years or more, and students stand to learn a lot from such harsh conditions, they learn what life really means.

And who says Electricity is a problem, stop kidding yourself, it's not a problem!. . we've survived for years without electricity, that's not about to change anytime soon. the businesses are doing fine, the economy is growing better, the fact that banks are sacking workers is not indicative of a problematic system, its only temporary, they will hire them again!

. . . and to think some Nigerians are protesting is just pure idiocy, what exactly are they protesting for?. . the government has successfully resolved all security problems, even a four year old can walk the streets of Jos at 4:00 am without fear.

Niger delta problems are now a thing of past archives, pollution laws have been passed, the schools in the region according to a confirmed international source will soon be rated as one of the best in the world, the companies over there are hiring people in mass so much so that they they still have lots of open positions without people to fill them.

Even Healthcare in the country is now rated as the best in Africa and one of the top ten in the world, little will anyone wonder why the president was flown back into the country after doctors in South Africa failed to restore him to back to good health.

So why can't we afford to spend a meager 62 billion on runways after all Nigerians remain the happiest people on earth, they deserve expensive runways

:d

*shakes head* hiss. When will things start to work in Nigeria?

yahoo!:

*shakes head* hiss. When will things start to work in Nigeria?

We ve been asking the same question before the idea of Nigeria was conceived

Bankole: How Ministries Duplicate Projects to Siphon Money




Speaker of the House of Representatives, Hon. Dimeji Bankole has alleged that federal ministries duplicate projects already executed and paid for in previous budgets in successive projects to fleece the country.

Bankole in Ibadan, Oyo State as a guest of honour at the commissioning of Computer Based Test Centre built by Electronic Test Company in conjunction with the University of Ibadan at the institution’s Faculty of Technology Annexe, explained how the lower chamber stopped the Ministry of Works from ripping the country of N40 billion through the 2009 appropriation bill.
According to him, from the total budget estimate of N100 billion the ministry presented to the House, last year, the Lower House, he remarked, discovered that the said amount was among the projects already budgeted, completed, certified and paid for in previous year’s budget.

In the last 10 years, he said that the House also uncovered between N800million and N1trillion accruals from the internally generated revenue which were not remitted to the national treasury.
Bankole expressed surprise that nobody had been arrested in connection with the alleged discovery and noted that the figure could be higher if the books were properly scrutinised.

Though, he assured that the House of Representatives would continue its oversight function, he however expressed surprise at the kid gloves with which identified criminals are treated in the country are being treated, noting that while pick pocketers are being chased about, the real criminals milking the country dry are being allowed to walk the streets freely.
“We will continue to exercise our oversight function without fear or favour. Before the presentation of the budget, the Ministry of Works came up with a budget of N100 for last year.

“But we discovered that N40bn of the amount was to be spent on the roads that have been done, completed and certified. We had to stop it.”
Vowing not to allow the matter to be swept under the carpet, he said he would not be surprised if the culprits initiated a “campaign of calumny” against him in the next few weeks.

The speaker said, “Chances are that the figure could be higher, because it was the civil servants themselves that gave us the figure. Imagine what N10tr could have done for this country in the last 10 years.

“This is an amount that could have been spent on education, power or the health sector. And up till now nobody has been arrested despite the undisputed fact that we have submitted our report on the matter.

“Those involved will start campaign of calumny against Bankole soon, but I don’t care. I’m now used to it. You call me speaker and I will speak. When they start abusing me in the next few days, just know why.
Sometime ago, he said that the country also lost the opportunity of having about $8billion invested in various sectors of the economy by a group of bankers.

He said that the five ministers designated by the President, who he did not name, to work out the modality with the investors frustrated the move because of their conviction that they would not be in direct control of the money.


ONLY IN NIGERIA!

‘Abuja Runway Project Not Costly’


Despite the criticisms that trailed the cost of the planned second runway at the Nnamdi Azikiwe International Airport, Abuja, which many Nigerians described as outrageous at N64 billion, the Bureau for Public Procure-ment, popularly known as Due Process Office, has said that the cost of the project is a reflection of the type and quality of runway that the Federal Government wanted.

Spokesman and communications consultant for the Bureau, Dr Abiodun Adeniyi, told THISDAY at the weekend that the planned 4.4 km Abuja runway project went through due process and due process certification and it was “painstakingly vetted” and approved at the aforesaid sum.

“I can say that I am in a good position to speak on this issue, because the Abuja Airport runway contract went through due process, and that due process certification is based on technical issues, and we have more than enough experts in the Bureau that certify contracts to get them done and that the contracts have value for money, and that the processes for deciding on the which company that should handle any contract is transparent, and the essence of the Bureau for Public Procurement is to ensure transparency, value for money and competence,” Adeniyi said.

He said that the project which was awarded to Julius Berger Nigeria Plc, was technically evaluated and it is the quality and type of runway that government wanted that determined its cost and according to documents made available to THISDAY that outlined the project’s history, four contractors initially indicated interest in the project.

The contractors were Julius Berger Nigeria Plc, RCC Nigeria Limited, PW Nigeria Limited and Dantata and Sawoe, but after the technical design and type of runway that government wanted was outlined, it was Julius Berger and PW that submitted tenders to do the work at N83.525.144.499,05 and 30. 205.054.312, 60 respectively and that was on September 11, 2009.

After clarification of designs concept, which indicated that the runway would be built like the one at the Frankfurt airport in Germany and it would meet all the conditions to land the biggest aircraft in the world, which is Airbus A380 that at landing multiply its weight by two, PW Nigeria Limited was said to have withdrawn its tender, while Julius Berger scaled the cost of the project to N72.754.601.138, 02.

“If you look at the technical implications, the processes that led to the award of the contract, it was nothing less than salutary. Yet, people are making comparison about airport projects done in other places and being far less , compared to the amount for which the Abuja Airport project is constructed for , in this case we are looking at a runway of the best quality , world class standard, that can take planes in the eight hundred series , consider that it a runway for Nigeria's federal capital , Africa's most populous country, the most prominent black country on earth , and we cannot make do with only one runway, and building another one has to be much more sophisticated , much more qualitative than the existing one, which is more than 20 years old, taking emotions and sentiments apart , you will realise that the processes that led to the award of the contract was transparent, nothing phony happened. Nothing phony went underneath,” Adeniyi explained.

THISDAY learnt that the Bureau was able to prune the cost till it was brought down to N63.584.605.157, 41 and according to Adeniyi, who is working at the Bureau in the capacity under the aegis of the World Bank Economic Reform and Governance project, the cost of the project was scaled down from more than N80 billion to N64 after checking and comparisons with similar projects all over the world.

“I can assure you from the due process perspective , the Abuja Airport runway contract went through painstaking vetting , it was painstakingly vetted , the initial tender submission was over eighty something billion but was scaled down to sixty four billion , we did it after checking , the checking most times are not only local but we externalised it. And we made sure we have the best hands in the field in line with international best practices. We never compromised in this process, Adeniyi added.

Reacting to avalanche of criticism that have trailed the cost of the runway project, Adeniyi said, “We are in a democracy, and democracy is about questioning, and especially about providing answers. We have a trinity, the executive, legislative and judicial arm of government. And all these arms are independent, they can raise questions whenever they deem it necessary; that is what we are going through, if this arm does not raise questions as an institution, even the people who seek participation in a democratic process are always free at any time to raise questions and they are always justified whenever they raise questions.”
Both the House of Representatives and the Senate have directed that payment should not be made for the project because the cost of the runway at N64 billion is outrageous.

House of Representatives rejected the project budget, describing it as highly inflated and ordered stoppage of work as members argued that the more than N64 billion planned for the contract was enough to build two new airports.
Similarly, the Senate Committee on Aviation has queried the project and also described the cost as highly inflated.

lagerwhenindoubt:

Yes,  only in Nigeria  some interesting comparisons

In 2002 It cost Korea $265 million dollars to build a 66,422 capacity stadium for the 2001 Korea/Japan World Cup. in Naira terms that is N33,140,900,000 (Thirty-three Billion [/b]One Hundred and Forty Million Nine Hundred Thousand Naira using forex rates in 2002).
if we were to use [b]2003 [/b]dollar xchange rates it would amount to N34,317,500,000 ([b]Thirty-four Billion Three Hundred and Seventeen Million Five Hundred Thousand Naira) 

In 2003 [/b]it cost Nigeria $360 million dollars to build a 60,491 capacity stadium for the common-wealth games
that is approximately N45,025,200,000 (Forty-five Billion and Twenty-five Million Two Hundred Thousand Naira using $ Forex rate in 2003)

[b]Six years later in 2009 [/b]South African Constructs a [b]90,000 capacity stadium for the 2010 World Cup at the cost of $440 million dollars approx N55,030,800,000 (Fifty-five Billion and Thirty Million Eight Hundred Thousand Naira using $ Forex rate in 2003)


Our Chinese-born NigComSat-1 (RIP) costs $340 million dollars as well

So why is a N64 billion naira ($494,208,000 in 2003) causing so much anger among our people, we have kept quite this long, why are we complaining. This is one of the fruits of a nascent (finally found a place for that word) democracy Only in Nigeria 

Did you read the article? It is N 64 Billion to build what amounts to a 2 mile road. You mean that is what you compare to building of a Satellite, a Stadium, etc as you have above? Think of the road from mile 12 to Ketu costing N 64 Billion Naira to build. *** shhudders****