Senators decry multiple road contract awards

The Senate Committee on Works has frowned at multiple federal road construction contracts by the federal government.

Individual members of the Committee led by former Kebbi state governor, Adamu Aliero expressed their disaffection on Thursday at a public hearing on the activities of the Ministry of Works Minister of Works and Housing, Honourable Babatunde Fashola led his team to the sitting.

Apart from outstanding federal roads yet to be completed, the Federal Government last week announced the award of fresh contracts totalling N311.4bn for projects in the Ministries of Works/Housing and Education.

The projects were approved at the Federal Executive Council meeting held at the Presidential Villa, Abuja.
The session was presided over by Vice-President Yemi Osinbajo in the absence of President Muhammadu Buhari.

Checks revealed that the lion’s share of the amount, N79.8bn, was approved for the construction of the Ibadan-Ilesa-Ife Road, cutting through Oyo and Osun States.
The senators asked the Minister of Works to prioritise road contracts rather than awarding fresh contracts in the face of paucity of fund.

ALSO READ: https://tribuneonlineng.com/icrc-to-partner-nigerias-private-sector-on-small-businesses-in-fragile-situations/

Former deputy Senate president, Senator Ike Ekweremadu advised the Minister of Works to give serious consideration to road concession to the private sector in the face of dwindling government revenue.

He said: ” I remember that I had a private discussion with you before on this. We should go the way of concessions: let the private sector build and take their money.

“The budgetary provision won’t take us far so we need to use alternative funding.

” The government is about returning tolls on our highways we must be sure that the roads are available. We also need to give the tolling to the private sector who can do better.

You must also give priority to certain federal roads in the next four years. You need to consider concessions and other options. Unless the roads are completed, you would have achieved nothing. ”

Senator Danjuma Goje aligned himself with the position of Senator Ekweremadu on giving certain roads a special priority but insisted that it must be evenly distributed across the geopolitical zones.

“We keep awarding additional contracts and I keep wondering the source of funding. So I support the view that we should prioritise the roads and let them be completed but they must be evenly distributed. Let us select the major roads across the country.

” We must also find ways and means outside government to finance the roads projects. ”

Chairman of the Senate Committee on Works, Senator Aliero said the federal government should look at the Sovereign Wealth Fund and the Pension Fund as alternative funding options for roads projects.

The Minister of Works told the Senate Committee that road concession was not a good option as he noted that the private sector was reluctant to enter into a partnership since road construction is a social service.

He said: “We must understand that the private sector wants to make money and some roads are easier for them. They prefer roads that have been built to merely put toll gates.  “So, we need exceptional concession of roads because it is a social service. “