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The House of Representatives will today commence investigations into the controversial contract for Abuja airport’s second runway. The project, planned for a whopping N64 billion, can build two new airports, lawmakers say.
The House Aviation Committee has confirmed that key officials of the nation’s aviation industry are expected at the hearings. They will be required to explain their roles in the contract award, estimated as one of the highest in the world.
The former Minister of Aviation, Babatunde Omotoba, the Senior Special Assistant on Aviation to the ailing president, Shehu Iyal, and the Managing Director of the Federal Airport Authority of Nigeria, Richard Asuebeogun, are some of the officials expected to appear before the committee today.
The House committee chairman, Bethel Amadi, explained over the weekend that the investigative hearings are not intended as an indictment, but to offer opportunities to the officials to explain their side of the story.
Contract inflation
Julius Berger Plc. was awarded the contract for the construction of a second runway for the Nnamdi Azikiwe International Airport, Abuja, on January 8, 2010, after initial bidding, at the sum of N63.4 billion, according to procurement documents obtained by the committee.
Ministry officials had argued that the job was necessary to compliment the aging first runway, which has endured heavy traffic for over three decades.
At the awarded amount, the project is considered possibly the most expensive globally, reflecting the nation’s poor procurement ethics that give room for contract inflation.
“Based on the information available to us,” Mr. Amadi had told his colleagues during debate on the issue in early March, 2010, “the amount is far too high, way too expensive and outrageous when compared to similar constructions around the globe.” When the cost of the contract became public knowledge, the House of Representatives ordered an investigation. They suspended further construction, arguing that based on indices available to it, the amount could turn over two new airports.
A member of the committee, Mayor Eze, who represents Imo State, told NEXT the investigations will go beyond an “ordinary hearing where noise will prevail,” as the lawmakers probe the unclear contracting procedures that saw the airport project sum allegedly inflated to the massive figure.
“We understand that appropriate work has to be done and at the end of the day, we will let Nigerians judge and appreciate the committee’s work,” he said.
Most expensive
Lawmakers heard details of airport and runway constructions in other countries and within Nigeria, where the cost hovered a little more than N40 billion. Mr. Amadi also explained how the ministry officials repeatedly turned down the committee’s invitation to give details of the award throughout 2009.
In details finally submitted in February 2010, the contract cost had soared to more than N80 billion from an initial proposed N4billion, and finally settled at the present award cost of N63.5 billion.
The committee was mandated to conduct investigative hearings and report in three weeks, while the construction remained suspended.
The former Aviation Minister, Mr. Omotoba, under whose tenure the contract was awarded, will be expected to explain how the ministry and Julius Berger Plc., arrived at the amount for a 4.5 km runway.