The contractor handling the Abuja Airport second Runway project has agreed to do the project at a cheaper rate.
The threat to cancel the project and call for a fresh bids may perhaps have prompted the contractor to reconsider the new amount of N534billion as against N90billion earlier agreed.
Minister of Aviation and Aerospace Development Mr Festus Keyamo disclosed this during an interview on Hard Copy on Channels television.
Mr. Keyamo said, he was surprise at the increase given that the contractor had initially agreed to the original contract value.
He said, he has now received some letters from the contractor, saying that the project can be done at a reduced rate.
“I’m understanding now that some letters came in today and all that, saying that they can do it at a far, far, far cheaper rate and I said, why didn’t you say so originally?
The Minister assured the contract will be reviewed by the President and other stakeholders, and that all parties will be involved in the process.
He stated that as a minister, he has a duty to advise the government correctly and ensure that public funds are used wisely.
“But we are going to look at it all, involve all the stakeholders. Mr. President will be briefed. His report will go to his table and chairmen of the committees and all that but me sitting down here, I have a duty to abide by my oath of office and to act with the fear of God”.
Mr. Keyamo, had earlier threatened the termination of the contract due to an unreasonable cost variation at the ministry’s budget defense at the national assembly.
According to the Minister, the original contract value was N90 billion, but the contractor later increased the cost to N532 billion, citing changes in the value of the Naira and the dollar.
The Minister described the variation as “unacceptable” and “an avenue for fraud”.
He explained that the President himself has expressed concerns about such variations, which he believes are an opportunity for corruption.
“And all of a sudden, because you say the dollar has just changed, the Naira value has changed, prices have gone up and all that, and then you now say N90 billion to N532 billion. Nobody’s going to accept that, and you’re pushing it down my throat and I said, No. The president himself, being the leader, the leader of the country, does not like such variations. He has told us clearly about that, he feels it’s an avenue for fraud and I also think so too, if they are unreasonable”.
The Minister stated that he has a duty to act with honesty and transparency, and therefore decided to terminate the contract and invite new bids for the project.
He emphasized that his decision was guided by his oath of office and his duty to act with the fear of God.
“Of course, when there is the change in value of the Naira, and then the goods are dollar-based, you can have slight variations and I have a lot of variations within my ministry too. All ministers, they have variations within their ministry but you, as a minister, you have to be reasonable, together with your permanent secretary to say, what is the percentage of the change of the dollar to the Naira? and then, of course, you do your own due diligence too”.
He added, “So it is for us, as ministers, to advise government correctly and I thought that was unreasonable and I said, it is time to maybe throw the bid open again and say, who can do its best for us?
