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Osun Signs N17.8bn Agreement on Osogbo-Kwara Road

06 Aug 2012

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Governor Rauf Aregbesola

By Yinka Kolawole 

Osun State Government has signed a N17.8 billion contract agreement with Sammya Construction Company Limited for dualisation of the 45-kilometres Osogbo-Ikirun-Kwara State boundary road.

The dualisation has been segmented into three of Osogbo-Dagbolu (International Market) to Alamisi Market in Ikirun (9.52 kilometres); Osogbo (Old Garage) to Ikirun junction (20.5 kilometres) and Ikirun-Ila Odo-Kwara State Boundary road (16.55 kilometres).
Special Adviser to the Governor on Works and Transport, Mr. Oladepo Amuda, said in line with the agreement, the project would be completed within 24 months, of which the work had already commenced.

He said the project was not the usual direct contract award, but a contractor-financing transaction which arose from the contractor’s confidence in the administration of Governor Rauf Aregbesola, adding that the contract sum would be repaid across 36 months after the completion of the project.

A development financial institution, The Infrastructure Bank Plc (TIB) which is the  Transaction Advisor, Fund Arranger and Financier of the project, is working in conjunction with the construction company and other stakeholders to fund the project.
He further said: “The road will link the market hub at Dagbolu with a spur from the major road to the market and from there to Alamisi Market in Ikirun. The major one will go from Old Garage and directly to Ikirun and to Kwara State boundary. The road is crossing rail lines in two locations and as a result, we are considering fly-over at the locations as part of the second phase of the project”.

Commending the people of the state for their understanding over the demolition of some buildings along the roadsides, Amudah said the government would ensure that the best is given to the people of the state to justify the sacrifice they have made.

Chairman, House Committee on Works and Transport, Hon. Abiodun Awolola, appealed to the contractors to ensure that they meet up with the terms of agreement and construct good roads with a view to meeting up with the promise of the governor.

Responding, Chairman, Sammya Construction Limited, Mr. Sammy Adigun, promised to meet up with the 24-months deadline for the project, saying that a lot of more hands are being employed to meet up.

He noted that “we are segmenting the project into three and internally, we have three projects working concurrently”, and revealed that the company had signed a local content undertaking, such that the labour and materials would be sourced locally up to 60 per cent.
Adigun stressed that “our target is 90 per cent; apart from the fact it would provide jobs for the people of the state, it would be cheaper for us. For drivers alone, we need about 100 and we will also employ trained artisans. In all, we are employing about 500 people on the project and 400 of them are likely to be local.

He added that for executing the project, the administration of Aregbesola has demonstrated its unwavering commitment to fully implementing its aggressive road development plan for the state, which, he said would facilitate the rapid development of the state.

Tags: Nigeria, Business, Featured, Rauf Aregbesola

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