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The Oyo State Government has announced a review of its contracts sum of 12 ongoing projects across the state, as a response to the surging foreign exchange rates impacting project cost.
Commissioner for Works and public transport, Professors Dawud Sangodoyin, gave the hint while briefing newsmen outcome of State Executive Council meeting led by Governor Seyi Makinde.
While the cost of the entire 12 affected projects by the price review stood at a little above 200 billion naira, Professor Sangodoyin said contractors handling the projects proposed 159.6 billion naira, as an additional but was negotiated to 86.1 billion naira thereby, saving the state a cost in excess of 70 billion naira.
The Commissioners, who stated that a committee set up also carried out an independent investigation on the claims of the contractors on the price review, said the decision of the state government aims to mitigate financial strain.
He said “the executive Council has considered the cost submitted by the committee and approves as follows; that the reviewed counter sum of the 12 ongoing projects which I’ve earlier mentioned stood at a total sum of ₦86.1 billion.
“Let me throw more light to this, that the contractor submitted a VoP (Variation of Prices) of ₦159.6 billion but the committee and experts consulted reviewed it and negotiated it to ₦86.1 billion which saved the government up to ₦73.4 billion.
“The payment of this is subject to the milestone achievements which is going to be consistent with the original contract. We believe that once this is done, all our projects will be distributed as we have agreed with the contractors and of course, we shall not have any abandoned projects.” Professor Sangodoyin stated.
According to Professor Sangodoyin, projects affected by the price review include construction of Rashidi Ladoja Circular Road Lot 1, construction of Rashid Ladoja Circular Road Lot 2, rehabilitation of Saki-Ogboro-Igboho road, construction of Iseyin-Apomu, construction of Apomu junction to Ogbomoso, construction of Ajia-New Ife road with a spur to Amuloko, Asphaltic reconstruction, expansion, and total overlay of Iwo Road Interchange to Osun-Oyo boundary, reconstruction, rehabilitation, and expansion of road network inside Aerodrome, Samonda, Ibadan, as well as junction improvement road improvement of Agodi Gate road.”
WRT-UP/Henry Odey
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