CONCESSIONAIRE ABANDONS N25B BAGANA-GUTO ROAD PROJECT

By NBF News

When on May 24, 2007, the Bagana-Guto Road project was awarded by the Federal Government under the Public Private Partnership scheme with the involvement of both the government of Kogi and Nassarawa states to an indigenous company, it was a dream come through for many Nigerians, especially the people of Agatu in Kogi State and Bagana in Nassarawa State.

The people rolled out drums with a belief that when completed, the road would boost economic, religious and cultural activities between the two communities that share a lot in common despite being separated by River Benue. Also, its completion would reduce the distance between the southern and northern parts of the country by more than half. The road would offer an escape route to travellers on the FCT-Lokoja Road, notorious for its high accident record.

But four years gone, and nearly two years after the date set for completion of the project, the communities' hope is gradually going down the drain. Like many other abandoned projects, after a year of commencement of work, work has stopped on site. Only the sub-contractor company, Nairda, is on ground. Nairda, acknowledging the importance of the project, had mobilized to site in 2007, taking the project to the level it has gone, but issues arose when the major contractor stopped funding the project. Although, Nairda has not moved out of site, work cannot continue due to lack of funds.

The road project, which has a 24-month completion period, covers 90kilometers, including a 2-km bridge to link Nassarawa and Kogi states across River Benue. Although it was not set out to be a federal project, but after some persuasions from both the governments of Kogi and Nassarawa states, the Federal Government agreed to be part of the project, estimated to cost N24.3billion.

The two states are to contribute 20 percent of the cost, the Federal Government provides 20 percent and the concessioner, is to make-up for the rest 60 percent. The Federal Government has paid 87 percent of its contribution, while the two states have also paid N1billion each, but the concessioner is yet to make contribution to the project even though the equities made by government were paid directly to the concessioner.

According to the Director of Highway Bridge, Federal Ministry of Works, Mr. I. Avinchi, the Federal Government had made attempts in recent past to terminate the contract of the concessioner but could not due to court injunction:

'When in 2009 the Federal Government threatened to terminate the contract of the concessioner on the grounds of breach of contract, he went to court to stop the action. This has made it difficult to either re-award the contract to another concessioner or increase the equity contribution of government in the project. There have been misrepresentations that the Federal Government had abandoned the Bagana-Guto project for yet another project, that link Kogi-Benue-Southeastern part, which incidentally is just 20kilometers away.

This is not true.'
Residents of the two communities urged the Federal Government to revisit the road project. The traditional ruler of Agatu community in Nassarawa State, Alhaji Kawanaki Guto, and Alhaji Ali Haruna of Bagana District in Dekina Local Government Area of Kogi State, expressed regret that construction work at the project site had been abandoned since last year.

Haruna said indigenes of Bagana were disappointed over the manner in which the project had been financed since inception. He said that he was aware that former Governor of Nassarawa State, Alhaji Akwe Doma, paid N1billion, being the state government's contribution towards execution of the project. Mr Ogile Adamu, a representative to the consultants handling the construction of Bagana-Guto Bridge, a part of the road project, said that the project was to be completed in 24 months.

About a year ago, he disclosed, construction work on the bridge was stopped due to non-release of funds to Nairda. He stated that when completed, a trip from the FCT to Enugu State could be reduced from five hours to two hours and would decongest the ever-busy FCT-Lokoja expressway.

Daily Sun was told the concessioner had moved from its base to another location in Abuja. In fact, the only contact (phone number) to the whereabouts of the company as got from the Ministry of Works was also not reachable. An e-mail forwarded to the company more than two weeks ago is yet to be replied. While Nigerians wait endless to see the Bagana-Guto Road project become a reality, there is need for another look at some projects being executed by concessioners in Nigeria.