FEC approves N8.8billion for water projects in Kano, Borno

Nigeria’s Federal Executive Council has approved the sum of about N8.8billion for the augmentation of contracts for water projects in Kano and Borno states.

The Minister of Water Resources, Suleiman Adamu stated this while briefing State House correspondents after the meeting of the Council presided over by Vice President Yemi Osinbajo.

Adamu said that the approvals followed two memos he presented at the meeting.

“The first one was for expansion and completion of Bagwai Irrigation Project on Watari Dan in Bagwai local government area of Kano State.

 “We have sought for an augmentation of N3.76 billion, which was approved. 

“The contract has been ongoing and at some point suspended because of lack of funding.”

According to the minister was awarded to Messrs Dantata and Sawoe Construction Company Limited, which was mobilized in 2006 for an initial period of two years.

He said that the scope of work was a special irrigation scheme for a total of 872 hectares.

“We have done an audit in line with our policy since the inception of this administration and since I came into office in 2015, whereby we are laying more emphasis on completion of ongoing and abandoned projects.

“Therefore, Council was gracious to approve this augmentation with sum of N3.762 billion, bringing the new contract sum from N5.4 billion to N9.2 billion, inclusive of 7.5% VAT, with an additional completion period of 24 months plus another 12 months liability period.”

Adamu said that the second memo was for the augmentation for Biu Water Supply Project in Bornu State.

“Again, this is a project that was started in 2001, but is still yet to be completed.

 “It ran into a lot of problems, mainly associated with funding and the Boko Haram insurgency.

“So, we sought for an augmentation. There were two contracts; lots one and two, which have now been merged into one contract in favour of Nalado Nigeria Limited, who are the contractors for one of the lots.’’

 “But because the contractor for lot one has decided to opt out of the contract, we sought approval of the Bureau of Public Procurement and the other company that was doing the lot; Nalado Nigeria Limited, agreed to take over the lot which was being executed by Mothercat.

“So, the total augmentation, like I said, is N5.063 billion, bringing the contracts sum now to N9.36 billion from N4.29 billion, inclusive 7.5% VAT, with a new completion period of 24 months.”

Adamu hoped that the projects would be implemented and completed by 2023, adding that it made more sense to complete the projects rather than embark on new ones.

Ime N