The House of Representatives has disclosed that the Federal Government did not get the approval of the National Assembly to embark on Lagos-Calabar coastal highway project.
This is even as it said the procurement process of the coastal highway would be investigated.
Recall that the project has been vehemently opposed by many Nigerians, especially opposition leaders.
Former Vice President, Atiku Abubakar 2023 presidential candidate of the Labour Party, Peter Obi, have asked the Federal Government to come clean on the project on several occasions.
The House however implored the Minister of Works, Minister of Finance and the Attorney-General of the Federation and Minister of Justice to provide all project guarantees and credit enhancement instruments are sent to the National Assembly for approval.
The Green Chamber equally directed its Committees on Procurement and Works to investigate the procurement process of the contract for the project.
The motion, titled “Urgent need to investigate the procurement process and award of contract for the Lagos-Calabar Coastal Highway’’, was moved by Austin Achado at plenary in Abuja on Thursday.
Achado said award of the contract did not follow due process, adding that it also did not get the approval of the National Assembly, hence the need to thoroughly investigate the procurement process of the contract.
“The House is disturbed that the contingent liabilities accruing to the Federal Government of Nigeria on this project violate the Debt Management Office (Establishment) Act of 2023, as Section 22(3) states that the minister shall not guarantee an external loan unless the terms and conditions of the loan shall have been laid before the National Assembly and approved by its resolution.
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“The guarantees issued to cover the debt financing component of this project do not have the approval of this National Assembly,” Achado said.
Speaking further, he noted that the Federal Ministry of Works had executed an Engineering Procurement Construction and Finance (EPC+F) contract, in favour of Hitech Construction Company Nigeria Limited, for the delivery of the 700km Lagos to Calabar Coastal Road and Rail Project estimated at a rate of N4.329 billion per kilometre, using reinforced concrete technology for a carriage width of 59.7metres to include 10 lanes, shoulders and rail with additional designs of service ducts, street lights, drainages and shore protection.
The lawmaker expressed concerns that the procurement strategy might have violated the Public Procurement Act 2007, Section 40(2) which required that where a procuring authority adopts to use Restrictive Tendering Approach, it should be on the basis that the said goods and services are available only from a limited number of suppliers and contractors and as such, tenders shall be invited from all such contractors who could provide such goods and services.
According to him, the procurement strategy adopted by the Federal Ministry of Works for the award of the contract violates the Infrastructure Concession and Regulatory Commission Act 2905, as Section 4 of the Act outlines that all approved infrastructure projects and contracts for financing, construction and maintenance must be advertised for open competitive public bid, in at least three national dailies.
Section 5 of the Act further clarifies that any direct negotiations with only one contractor could be allowed, only after exhausting the provisions of section 4.
He expressed concern that the Federal Ministry of Works, in promoting the project, has provided a rate per kilometre for the planned works, but has not provided the private partner’s financing sources, structure and competitiveness, as this was likely to create contingent liabilities to the Nigerian government.
The House, therefore, asked it’s committees to report back within four weeks
