Business

FG, Osun to discuss N29.2bn reimbursement

The Minister of State for Power, Works and Housing, Hassan Suleiman, has said that the Federal Government will need to reach an agreement with the Osun State Government before the state will be repaid the funds expended on the reconstruction of the Gbongan/Akoda road and the overhead bridge at Gbongan junction.

The minister said this while inspecting the road project as well as the Federal Secretariat and Federal Housing Project in Abere; and the Ilobu Road and Ojutu Bridge at the home town of the Deputy Speaker of the House of Representatives, Mr. Lasun Yusuf.

He said that the state government got an approval from the Federal Government before embarking on the construction of the road, but added that the evaluation of the project would have to be done before refund could be effected.

“The cost of the projects would be passed to the Federal Government for evaluation and certain agreements will be reached before the inspection of the projects,” the minister stated.

Defending the need for the overhead bridge across the Ife/Ibadan Expressway at Gbongan junction, Suleiman said the bridge was built by the Osun State Government in order to reduce accidents at the spot.

The minister gave an assurance that the administration of President Muhammadu Buhari would ensure the completion of all the federal projects going on in the state and other parts of the country in order to make life better for the people.

Suleiman commended the contractor for the quality of job and progress made at the Federal Housing Project site in Abere, while urging him to keep it up.

While inspecting the Federal Secretariat, the minister called on the contractor handling the project to ensure the quick completion.

Suleiman said the Federal Government had approved the upward review of the project cost from N2.5bn to N2.6bn, but charged the contractor to ensure that the project was completed without any further delay.

Osun State Commissioner for Works, Mr. Kazeem Salami, had earlier told the minister that the Gbongan-Akoda Road was awarded on March 13, 2013 at N29.2bn and that it was supposed to be completed in December 2014, but was extended to December 2019 due to paucity of funds.

The Project Coordinator at the Federal Secretariat, Mrs. Oyinlola Onwubalili, stated in the situation report she gave that the contract was awarded on December 9, 2011 at the sum of N2,548,444, 283.80, adding that the original site was within Ede community.

She explained that the project was relocated due to protests from the Osogbo community and it was taken to its present location at Oke Baale along Ibokun Road, adding that the relocation caused a delay.

Onwubalili added that the project would be completed in nine months if the current pace of work was maintained.

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Categories: Business