Nigeria Content Online

Following the
cancellation of the $420million Abuja Airport runway project, the
federal government has decided to reopen the bid for the contract to
both local and international companies, the minister of Aviation,
Fidelia Njeze said. The controversial contract for the Abuja airport
runway, which was initially awarded to Julius Berger Nigeria PLC, was
cancelled following lawmakers investigation into the cost of the
project. The House of Representatives Committee on Aviation condemned
the cost of the contract for the second runway of the Nnamdi Azikiwe
International Airport, Abuja, on grounds that the N63.8billion was
excessively high. The House says the winning bid from Julius Berger
Nigeria was more than double the price of the second-placed offer. The
House had therefore recommended that the contract be terminated and new
tenders advertised as the previous one failed to follow due process.
“New advert for the design and construction will be put out soon and it
will have international companies competing for the scope of the design
and construction,” she said.

Bids to expand the
Abuja airport, including replacing its ageing runway, was opened in the
middle of last year and Julius Berger emerged ahead of five other
companies. The construction company which has its headquarters in Abuja
is considered Nigeria’s biggest construction group, with revenues of
₦112 billion in 2008 and has handled most of Nigeria’s road and major
buildings.

House hails decision

At the weekend, the
House of Representatives Committee on Aviation, hailed the decision of
the federal government to terminate the runway contract.

The chairman of the
committee, Bethel Amadi said the cancellation of the contract is a
further testimony of the excellent relationship of the legislative and
executive arms of government.

He commended
President Goodluck Jonathan for allowing the principle of separation of
powers to prevail by acting in tandem with the recommendations of the
House in terminating the runway project.

“This is indeed a
welcome development for the growth of democracy and the ability of the
various arms of government to work in harmony to ensure good
governance,” Mr Amadi said.

The lawmaker noted
that reducing the contract sum would not have been in the best interest
of the nation, adding that outright cancellation and re-tendering would
be appropriate for transparency and accountability.

The House had, via
a motion, kicked against the high contract cost, saying it was enough
to construct two new airports. It consequently directed the aviation
committee to investigate the contract award.

Cost reduction not enough

Just as the
committee began its assignment, the presidency inaugurated the
Presidential Project Assessment Committee (PAC) chaired by Ibrahim
Bunu, a former FCT Minister, which re-examined the contract award and
made recommendation to the President.

The panel recommended the review of the contract from the initial N63.5 billion to N49.6billion.

But the House
committee queried the modalities for the reduction and maintained that
the sum of N49.6billion was still on the high side. It insisted that
the nation must get value for its money in the project.

The committee, in
its subsequent report, noted that the process that led to the award of
the contract was fraught with illegalities and contravened the
provisions of Public Procurement Act.

The lawmakers’ opposition to the recommendation of the Presidential
Committee as well as some damning revelations on the contract made
available to the Presidency were said to have informed the decision of
Mr Jonathan to cancel the contract.