Emma Thompson
Mon, Sep 4, 2023 11:25 PM

Minister Expresses Displeasure Over N85 Billion Contract for Wasa Housing Project

BusinessEarn Max 30 Coins💰 Get coins immediately after reading this article

Minister Expresses Displeasure Over N85 Billion Contract for Wasa Housing Project
The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has expressed dissatisfaction with the N85 billion contract for the provision of infrastructure for the Wasa Affordable Housing project in Wasa District, Abuja. The project, which has been in the making for nine years, has faced delays and an unfavorable arrangement with private developers. Wike emphasized the need for the government to participate and benefit from such projects, while ensuring the affordability of housing for the masses.

Minister Nyesom Wike, along with Minister of State for FCT, Dr Mariya Mahmoud, and other government officials, recently visited the road construction site for the ongoing Wasa Affordable Housing project in the Wasa District of Abuja. However, Wike expressed his dissatisfaction with the N85 billion contract for infrastructure provision.

The contract for infrastructure was initially awarded in 2014 for N26 billion but was later revised to N85 billion in 2018. Currently, the contractor has received N21 billion, leaving an outstanding balance of N64 billion. The progress of the project stands at 21.4% so far.

Government's role in the Wasa Affordable Housing project is to provide the land and infrastructure, while private developers are responsible for building and selling houses at affordable rates. The original plan was to sell a two-bedroom flat to the masses for N7 million.

However, Minister Wike expressed concerns about the arrangement, stating that the government should not spend N85 billion on infrastructure and land provision without benefiting directly. He believes it is essential for the government to participate further, considering they provided the land and infrastructure.

In his statement, Wike mentioned, "This kind of arrangement is not commendable at all. We think that the government must also participate, having provided the land and infrastructure."

The Minister stressed that partnering with private developers should involve a fair distribution of benefits. He proposed a revised approach where the government could take a percentage of the profits from housing sales to determine affordable prices for the masses.

"If we are partnering with private individuals or developers, the common sense is that you provide the land, provide infrastructure, and they come and develop. Then government, for example, can take 10 per cent then the developers take 90 per cent, depending on the value," highlighted Wike.

Wike further emphasized that the current housing prices were unaffordable for the masses and stated, "The masses cannot afford N7 million for a house." He believes the project should be revisited for proper planning, ensuring the government benefits from the project and that the houses are genuinely affordable for those they are intended for.

Another issue raised by Minister Wike was the delay in the completion of the project. According to him, the FCT would not rush into awarding contracts without the financial capacity to see them through. He stated, "Every contract is abandoned because there is no money. So, we are going to look at everything."

It is evident that Minister Wike is keen on reevaluating the contract and the partnership arrangement with private developers to ensure a more equitable distribution of benefits. His emphasis on government involvement and the affordability of housing for the masses showcases his commitment to addressing the needs of the people and enhancing the success of the Wasa Affordable Housing project.

Source of content: OOO News 2023-09-04 News

More detailed, more comprehensive, fresher news, please visit OOO NEWS.

Share content to earn coins