Home Business & Economy FEC okays N1.712 bn for Gurara water pipeline contract

FEC okays N1.712 bn for Gurara water pipeline contract

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The Federal Executive Council (FEC) on Wednesday approved the payment of N1.712 billion for the maintenance contract of 75 kilometer pipeline supplying water to the Federal Government.

The Minister of Water Resources, Suleiman Adamu, disclosed this to State House correspondents at the end of FEC meeting chaired by Vice President Yemi  Osinbajo at the Presidential Villa, Abuja.

According to him, the contractor remained on site maintaining the pipelines for over nine years without settlement.

He disclosed that his Ministry and the Ministry of Federal Capital Territory (FCT) will settle the N1.712 billion equally.

He said: “Today, we presented another memo which is complimentary to the memo I presented last week on the settlement of the 75km Gurara pipeline contract from Gurara Dam to lower Usuma Dam, a three diameter pipeline.

“Last week, we got approval to engage a contractor for one year and to have a training contract with the contractor so that we can prepare to handover to the FCT and the Ministry the project.

“This memo that was considered today has to do with the backlog of payment. The contractor as you are aware has been maintaining the pipeline since the project was completed in 2008 and there was no exit plan as such to take over the project, the contractor didn’t want to leave the site and leave the pipeline unattended.

“He has been maintaining the pipeline in the last nine years without any compensation and as part of our policy to tidy up loose ends pertaining to ongoing projects or completed projects; we decided to disengage the contractor to pay him off for his services and to take over full control of the pipeline.

“So, we negotiated with the contractor for a fee to be paid to him for the service he rendered over the last nine years and we agreed that this money will be shared fifty, fifty between the Ministry of Water Resources and the Ministry of Federal Capital Territory.

“So, the total amount is N1.712 billion over the course of nine years and the Ministry of Water Resources will pay fifty percent of that and the Federal Capital Territory will pay the remaining 50 percent and we all have made provisions for this money under the 2017 budget.” he said.

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