The Federal Government has dismissed rumors that it abandoned inherited road projects, clarifying that a review is underway to prioritize projects based on available funding.
Minister of Works, Dave Umahi, addressed contractors in Abuja, stating that the government is reevaluating projects awarded up to 18 years ago to ensure proper budgeting and procurement processes.
The move aims to introduce innovative funding and budgeting solutions to accelerate road infrastructure development nationwide.
Projects with significant procurement costs but minimal completion progress will be reviewed, and those awarded in 2024 will not be eligible for price variations unless market prices of construction materials change substantially, according to Daily Post.
The government’s clarification comes as a reassurance to contractors and stakeholders in the road construction industry.
According to him, “Some of these projects were awarded 18 years ago, some 10 years ago, others five years ago.
“On the issue of new projects, if we have appropriation that has not been completed, at least, one kilometer, we are not going to carry out such appropriation.
“That is what the FEC is concerned about. We can’t have N500 million on budget but procurement is supposed to be N50 billion or N100 billion and you go ahead to award such a project. We have been directed not to do so.”
“On issues of Variation on Price (VOP), all projects we awarded in 2024 will not attract any VOP.
“We have made it a policy that such projects can not get any variation.
“However, within the course of the year and the project execution, if there are issues changing the basic market prices of construction materials to a certain extent, we will revisit the issue of VOP and it will not be selective,” Umahi said.
