FG Terminates N64bn Abuja Runway Contract
Friday, 09 April 2010 18:32 KEHINDE AKINTOLA

Following the corruption allegation surrounding the award of contract for the construction of the second runway of the Nnamdi Azikwe International, Abuja, the Federal Government has directed the Federal Ministry of Aviation and Federal Airports Authority of Nigeria (FAAN) to terminate the N64 billion project.
The project was awarded to Julius Berger Construction Company after the signing of agreement on February 5 this year and was scheduled for complettion in 24 months. The directive to terminate the project was issued by Yayale Ahmed, Secretary to the Government of the Federation (SGF) in response to the resolution passed by the House of Representatives after a motion raised by Dino Melaye on the subject. Babatunde Omotoba, former Minister of Aviation gave the hint while testifying before the House Committee on Aviation at the just concluded investigative hearing on the processes that led to the award of the N64 billion contract to Julius Berger.

Omotoba explained that the initial N72 billion contract proposal was reduced to N64 billion after several negotiations and upon his insistence on having comparative costs for such projects from airports around the world. Also in his testimony, a representative of PW Construction Company which offered the least bid price at the sum of N30 billion insisted that the company could construct the 3.4 kilometer second runway with other facilities at the same cost and without variation.

He however explained that the company’s decision to opt out of the bidding was due to inadequate time for the submission of cost for the reviewed contract within four days.

Messrs PW also told the committee that the company as a matter of policy could not undertake contracts worth more than its two-year turn over so as to avoid delays or undue constraints in the execution of projects. He disclosed that the company on receipt of the initial invitation from FAAN embarked on a survey of the airport for a period of three weeks, concluded arrangement with a UK based construction company as technical partner for the project and conducted an Environmental Impact Assessment (EIA) of the area earmarked for the project.

Messrs PW also tasked the Federal Government and the Bureau of Public Procurement (BPP) to jettison the idea of using ‘selective tendering ‘Engineering Procurement and Construction (EPC)’ in the country. The representative of Julius Berger when asked whether the cost of the project could be reviewed downward, said the matter could be given consideration.




http://www.businessdayonline.com/index.php?option=com_content&view=article&id=9973:fg-terminates-n64bn-abuja-runway-contract&catid=1:latest-news&Itemid=18

Nice one

The difference in price from one company to the other is way too much. Julius Berger is def stealing money for some people with the contract. Julius was given the contract, even as it have a high cost of 64B compare to 30B by another company. Nigeria naa waa oooo

Haba, 3.4 Kilometers for all that money. No wonder Nigeria never move ahead. We are indeed the most corrupt people in the world

Great move but, more is needed in other sectors too.

Thank goodness it's been terminated.

God Almight save naija.

its only temporal,it will be reviewed and if possible increased again .dats naija 4 u

Dont be surprised,the Contract will still finds its way back.This stoppage must have been as a result of grumblings of certain 'interested party' who were 'shafted' out of the 1st arrangee!.Naija for you!

laudable on the surface - but whats really going down is the current crop of officials want their cut

there is no project that will be executed in naija without inflation by some interests. its a fact of life.

but this business of contracts, projects, business dealings etal dying with n administration is very bad business.

the implication is that only extremely short term projects re viable in nigeria - sort of like naija mentality for quick rather than long term gains

The original plan was for the runway to be laid with gold, but now, na plane steel una go get. QED

Wont N64b be enough to construct a new airport with runway and other things required in an airport?

the bottom line is this , I learnt that Julius Berger contracts is one of the most 'legit' ways for government officials to siphon funds.
The contracts are over inflated and the sharing is done subsequently.

@ ReahRich

I tire o my bro!

Abeg, make this people have mercy on us na

Nothing for this world wey no dey finish one day

Make this people no sipphon Naija die na!

This mini-administration is showing that they mean biz . . . . good move, but let us hope, they wont take it from them and later give it back at even more expensive of a price

D truth is dat EPCs or turnkey projects can be hyper inflated nd dis proces is d biggest way we throw away employment oportunities in our country.

A turnkey project is lik a man tryin 2 build a house nd calls an engr nd says u c dat house u built in Abuja 4 my friend build it 4 me, I'm not particular abt d cost just tell me how much d project will cost nd d amount I will giv u 2 start wit den wen u finish nd handover d key I will pay d balance. This is just like a meal ticket or blank cheque to d engr or contractor, wat shld have bin done is 4 FAAN engrs to do a detailed design nd costin of d project b4 invitin contractors to bid nd for FAAN 2 do dis they wld nid more staff in all departments nd dis goes for our Ministry of works, power and petroleum dats y wen u hear contract sums it just blows away ur head because dis style allows 4 a lot of coruption which most times can't be traced nd d contractors can lay claim 2 dat amt of profit because most times their funds is always involved so they ask u 2 pay 4 their funds which they didn't use actually nd u are incompetent to monitor or evaluate.

Our level of education is also makin it easy 4 us 2 b robbed nd dats y afta dis semi literates in d house terminate d contract it wld be later reaproved @ a higher cost wen their interests hav bin taken care of, I pray 4 Nigeria.

If the contract is to be stopped and revoked, who will take the blame and get axed for this hike in price and bad logistics 9ja, nobody will bother to resign, life will just go on like that and will the pepertrators will waait for another day to play out this scam in another form. GOD help us in 9ja

Oga marvix
Not trying to be rude-but can you re-write what you posted in plain English.You seem to be making a good point,but I started devloping headache trying to read what you wrote.Is that pidgin English, short hand or New century speak

Please re-post it or translate for us, I really want to get your point.

$441 Million for a 3.4 Kilometer runway!!!I have seen runways at Airports in many countries of the world and as far as I could see-they were not really different from normal good roads.I see little difference from the runway at JFK Airport or Abuja Aiport and Interstate 94 in the USA and the good portions of the Abuja Expressway.

Engineers in the house, please educate us.Can $441 not build a whole airport or are runways made with material from Mars

emmaf5542:

$441 Million for a 3.4 Kilometer runway!!!I have seen runways at Airports in many countries of the world and as far as I could see-they were not really different from normal good roads.I see little difference from the runway at JFK Airport or Abuja Aiport and Interstate 94 in the USA and the good portions of the Abuja Expressway.

Engineers in the house, please educate us.Can $441 not build a whole airport or are runways made with material from Mars

I tire ooooo.

WAY TO GO BOY

Jonathan seem to be doing the right things since he took over the presidency, can jonathan be the mesiah we have been waiting 4 ? jonathan if you continue like this and things improve in naija we will vote for you come 2011 if you decide to run 4 president.

Na wah oh for our currupt officials oh haba over $400million USDfor a 4 km runnway haba!!!


A standard worldclass 6 lane highway in europe with service/breakdown lane, and modern underground  rain/storm drainage and bright high vicibility road markings  cost 1milliom euros per kilometer    haba

calculate and judge for your selves 

_{" in thick american accent na wah ooh"} 

This is certainly a good news.
Please let the projects committe review many contracts too
BTW,i am sad it was terminated it would have been better if it was re-awarded to the other company of N30 billion
Another abandoned project

Nice of them.

a wind of change is BLOWING IN THE LAND SO FAR AS THE PROJECT WAS CANCELLED.!!!!

This contract is not terminated, it's just a matter of time we are coming back to it. The airport is there and we need this second runway period. I am expecting the FG to say look we have the professors, engineers, local men/women and the materials to construct the road. Therefore, no more contract for JB these guys are starting the job tomorrow. Case closed

Good move!!

I guess it's too much to ask that some people be sacked or indicted over this.

Na wa!

9ja, the more you look, the less you see.

rickie4us:

the bottom line is this , I learnt that Julius Berger contracts is one of the most 'legit' ways for government officials to siphon funds.
The contracts are over inflated and the sharing is done subsequently.

Very correct, julius berger is a very corrupt company over inflating projects, even their mother company in germany "bilfinger berger" is facing serious criminal charges of corruption because of their nigerian contrats right now in germany.