Members of the House of Representatives are going through the award of the controversial Lagos-Calabar coastal highway contract, on the suspicion that it did not pass the integrity test in terms of the process, one of the grounds on which the main opposition figures in the country, including Atiku Abubakar, presidential candidate of the Peoples Democratic Party (PDP) and Peter Obi, his Labour Party (LP) counterpart, have attacked it.
The members of the lower legislative chambe during plenary on Thursday, adopted the motion sponsored by Austin Achado, a lawmaker representing Gwer east/Gwer west federal constituency of Benue, which also included the summoning of David Umahi, Minister of Works, Wale Edun, his Finance counterpart and Lateef Fagbemi, Attorney General of the Federation (AGF), to furnish them with “all guarantees and credit enhancement instruments,” for the project.
The federal government recently commenced the construction of the 700km Lagos-Calabar coastal road — which is expected to run through the shoreline of beach resorts in Lagos, while traversing eight other states, a project which has run into murky waters of criticisms from many quarters.
The naysayers had questioned not only the transparency of the contract award process, but the viability, as well as the priority of the project at a time major highways in Nigeria are not only in states of eyesore, but have become death-traps, while providing leeway for criminals to operate.
Achado, who said the “award strategy” of the road contract violated the Public Procurement Act 2007, told his colleagues: “This laudable project with the prospect of providing easy access for movement of goods and services across the nation, has a financing structure, as announced by the honourable minister of works, which requires the federal government to provide 15 percent to 30 percent co-financing, while the private sector counterpart will provide the balance.
“And to toll the road when completed for a minimum period of 15 years to ensure full recovery of all debts and equity applied for the delivery of the project. There are concerns that the Procurement Strategy may have violated the Public Procurement Act 2007, section 40(2) which requires 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 can provide such goods and services.
“The procurement strategy adopted by the federal ministry of works for the award of the contract violates the Infrastructure Concession and Regulatory Commission Act 2005. 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, and 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.”
Unyime Idem, Chairman, Committee on Public Procurement, said parliament who said that the members had received several petitions demanding the investigation of the procurement process of the project, hence the need to heed to the cries of Nigerians to scrutinise the process.
After the motion was adopted when it was put to a voice vote by Tajudeen Abbas, speaker of the house, the lawmakers mandated the committees on public procurement and works to investigate the matter, and report back within four weeks for further legislative action.