N63.5bn Abuja runway contract has no design, bill of quantity
From EMMANUEL ADEYEMI, Lokoja
Thursday, April 08, 2010
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A resolution of the House on March 3, 2010 mandated the committee to probe the controversy surrounding the award of the contract after the debate on a motion by Hon. Dino Melaye, alleging sharp practices and violation of the BPP Act by officials of the Ministry of Aviation and all agencies connected with the contract.
At the public hearing, the committee established abuse of BPP Act and gross inflation of the contract when compared to similar contracts executed by the Akwa Ibom, Gombe, and Katsina State Governments.
Director General of BPP, Engr. Emeka Eze who was represented by Engr. Nebo Olisa Emordi, a director in the bureau informed the committee that the Federal Ministry of Aviation, then under the leadership of Babatunde Omotoba recommended restrictive tendering for the contract.
He added that Julius Berger appeared to be the most competent of the last two companies shortlisted for the project, and that BPP issued the ‘no objection certificate’ on the sum of N63.5 billion recommended by the ministry, against the sum of N72 billion prepared by Julius Berger. FAAN director general in his defence told the committee that his agency did not anticipate the high cost of the project when being conceived, but that due process was followed in the award of the contract to Julius Berger.
The Director of Airport Engineering Services, Engr. Dunomah Saleh in his presentation said FAAN’s in-house evaluation of the project had estimated the cost at around N26 billion, although, he admitted that the site of the runway was not visited, while bid document was given to the contractors as a guide in the preparation of their proposals. World Bank consultant to BPP, Abiodun Adeniyi was taken to task by the committee over an interview granted to discredit the probe, which he later denied.
Immediate past minister of aviation, Babatunde Omotoba, insisted that due process was followed from the beginning to the end. He stated that the ministry was alarmed at the price of N83.4 billion submitted by Julius Berger, adding that he queried FAAN that there must be comparison with other contractors’ quotations, which, he said, helped him to be well-informed about the cost of a runway.
Based on his persistence for openness, he said the ministry recommended restrictive tendering, based on the Procurement Act. Chairman of the Committee, Hon. Bethel Amadi pointed out sections of the BPP Act that were breached in the contract by FAAN and the ministry.
He blamed the BPP for certifying the project when only N4 billion was appropriated for it in the 2009 budget, while further alleging that FAAN deleted three of the companies that bided for the project, and added Dantata and Sawoe in clear contravention of the Public Procurement Act.
http://www.sunnewsonline.com/webpages/news/national/2010/apr/08/national-08-04-2010-001.htm
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