Umahi: Foreign Banks’ 70% Funding of Lagos-Calabar Road Shows Contract Openness

• Explains why ministry diverted coastal highway in Ondo

•Says EFCC to begin arrest of defaulting contractors 

•Insists it’s not Igbos’ turn to be president

Emmanuel Addeh in Abuja

The Minister of Works, David Umahi, yesterday defended the federal government’s handling of the Lagos-Calabar Coastal Highway project, arguing that the fact that the government was funding only 30 per cent of the project while foreign banks were responsible for the remaining 70 per cent demonstrated the transparency and openness of the contracting process.

Umahi, who spoke at a press briefing in Abuja, also explained the ministry’s decision to divert part of the coastal highway in Ondo State, saying the route had been redesigned because of the difficult terrain and the need to adopt construction methods capable of protecting the road from the encroaching sea.

Besides, he insisted that the government would not be forced to revert to asphalt construction where it considered concrete more appropriate, stressing that the choice of construction method was based on engineering considerations rather than pressure from contractors or other interests.

On the Lagos-Calabar Coastal Highway, Umahi said the funding arrangement itself demonstrated that the process was open to scrutiny. He explained that the federal government’s contribution represented only about 30 per cent of the project cost, with foreign financial institutions providing the remaining 70 per cent.

According to him, the arrangement underscored the commercial and financial scrutiny to which the project had been subjected.

He also defended the ministry’s use of special procurement for a section of the coastal road, saying the process had gone through the Bureau of Public Procurement (BPP) and ultimately received approval from the Federal Executive Council (FEC).

Umahi said the ministry first identified a contractor with the technical experience to construct roads in difficult coastal terrain, after which the company submitted its bid. The ministry, he explained, subsequently compared the proposed rates with prevailing prices and submitted the bid to the BPP for review.

“Would you say we have infringed on the process or the law? So it’s those who do not understand the process that are still asking questions, that are still talking,” the minister said.

On the diversion of the coastal road in Ondo State, Umahi said the decision was necessitated by the physical realities encountered along the route, insisting that the government had to respond to the circumstances rather than blindly adhere to an original alignment.

He said the ministry had encountered a similar problem on another section of the coastal highway, where the sea had reached the edges of the road, requiring the adoption of a construction system similar to that used on the Eko Atlantic project.

Umahi also addressed the poor condition of some major federal highways, including the Asaba-Onitsha axis, saying the ministry had launched what he described as “Operation Rescue” to restore badly damaged portions of critical routes while more permanent reconstruction was being undertaken.

He said the government could not remain indifferent to motorists spending several hours trapped on major highways.

“We have had to intervene as responsible citizens. We have directed an operation, and we call it an operation rescue. And it’s ongoing,” he said.

The minister also announced a tougher enforcement regime against contractors handling federal projects, particularly those who had received government funds without deploying them to construction sites.

The minister said the federal government had begun working with the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Related Offences Commission (ICPC) and civil society organisations to monitor projects and recover funds from contractors who failed to execute their obligations.

“From next week, any contractor that has their money and it’s not on site, we are going to call for the EFCC so that we can recover the money,” he said.

On the choice between concrete and asphalt for federal roads, Umahi said the government would continue to determine the appropriate construction method based on the circumstances of each project.

“Nobody will force the government to revert to asphalt roads,” he maintained, arguing that concrete was appropriate for some major routes because of durability and the conditions under which they were being constructed.

The minister also used the briefing to defend the administration’s projects in the South-east and reject calls that the presidency should automatically be conceded to the region. Umahi said he did not subscribe to regional politics and insisted that it was not yet the turn of the South-east.

He said several people from the region were already aspiring to the presidency, meaning there was no basis for claiming that the entire South-east had adopted a particular candidate or position. “We know it’s not yet the time for our people to occupy this position,” he said.

On the relationship between himself and the Minister of the Federal Capital Territory, Nyesom Wike, Umahi said they remained members of the same political arrangement. “We need Wike as Wike needs us. So, it’s one family,” he said.