Umahi decries N14bn VOP on Enugu-Onitsha Expressway

From Isaac Anumihe, Abuja

Minister of Works Engineer Nweze Dave Umahi has described as unacceptable a situation where RCC could do a job of N38 billion and demand a variation on price (VOP) of N14 billion.

Speaking during a meeting of the Federal Ministry of Works with MTN and RCC Company Nigeria Limited over the slow funding and execution of the Enugu-Onitsha Expressway by MTN under the Infrastructure Development and Refurbishment Investment (Tax Credit) Scheme, Umahi said that going forward, such indulgence by contractors in the name of inflation would not be tolerated.

He used the medium to call on the manufacturers of cement, which is a key element in the construction industry, especially in the use of Continuously Reinforced Concrete Pavement (CRCP), to please reduce the cost of cement to N7,000, as the price of the dollar has drastically reduced, the cost of petrol is coming down, and efforts are being made by President Bola Ahmed Tinubu to fix the road.

“I’m happy that the policies of Mr President are working. Today, a dollar is about N1,400. And let me use the opportunity to express dissatisfaction with the cost of cement. Our contractors have called and complained that they wanted to move back to asphalt. We are using this medium to tell the cement manufacturers that at the time the dollar was almost N2,000, they increased cement from N7,500. Why should today, when the President has brought the dollar to stability at about N1,400, and it is still going down, why should cement be selling for N9,500? We are requesting cement manufacturers to bring down the cost of cement to N7,000. If after one week they don’t do that, I have to complain officially to Mr President,” he said.

Also speaking, the Minister of State for Works and the Permanent Secretary, Federal Ministry of Works, extolled the stance of the Federal Ministry of Works on the policies that would not only fast-track job execution but also guarantee value for money and quality project outcomes. They urged the contractor to cooperate with the new paradigm under the Renewed Hope administration and work towards delivering the Enugu-Onitsha dual-carriageway in record time so that the President could commission it for public use.