Emily Johnson
Fri, Sep 8, 2023 3:00 PM

FCT Minister Declares Alarming Rate of Contract Variations

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FCT Minister Declares Alarming Rate of Contract Variations
The Minister of the Federal Capital Territory has expressed concern over the alarming rate of contract variations in the territory. He plans to prioritize and fund ten projects as part of measures to address the issue of abandoned and uncompleted projects. This article discusses the Minister's plans to overhaul the system and ensure project completion.

The Minister of the Federal Capital Territory (FCT), Barrister Nyesom Wike, has declared the swelling rate of contracts variation for projects in the Territory as alarming and unacceptable to the current FCT Administration.

During an inspection of the ongoing repair works at the Lower Usman Dam Water Treatment plant in Bwari Area Council, Wike expressed his concern over the high number of contract variations. He vowed to overhaul the entire system to address this issue.

Wike highlighted specific examples of projects where contract variations were particularly concerning. In one instance, a contract originally awarded at a cost of N20bn in 2017 had its contract sum revised to N50bn in 2020. The FCT Administration has already paid almost N50bn for the project, and there is still outstanding work requiring an additional variation.

The Minister emphasized the need for transparency and accountability in the procurement process. He noted that the FCTA is going to supervise the procurement process for the Usman Water System project, which was deemed an emergency contract but had not been fully awarded since August last year. The Minister stated that the project would be reevaluated and open to other companies to bid.

Furthermore, the FCTA has chosen 10 contracts to prioritize, and agreements have been reached with the respective companies handling them. The Minister mentioned that some contracts are expected to be completed within six months, while others will take up to 15 months. To ensure proper funding, the FCTA will introduce an Internal Service Provision Order (ISPO) to align the projects with internally generated revenue.

By utilizing the IGR, the FCTA aims to reduce the rate of project abandonment in the FCT. Additionally, the Minister mentioned plans for the resurfacing of roads in Garki and Maitama, citing the dire condition of the roads. He emphasized the importance of ensuring contractors are paid promptly for their work.

The Minister concluded by emphasizing the need to prioritize and complete projects rather than scattering resources across numerous unfinished ones. By refunding projects that lack funds and focusing on one project at a time, the FCT Administration hopes to tackle the issue of abandoned projects in the territory.

Source of content: OOO News 2023-09-08 News

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