Inflation: Delta govt jacks up costs of ongoing projects, some by 100% of initial project cost

The Delta State Government on Tuesday announced the approval of an upward review of the cost of some ongoing projects in the state, reviewing some by 100% initial project cost, while some by 50%.

Mr Olisa Ifeajika, Chief Press Secretary to Governor Ifeanyi Okowa announced this while briefing journalists at the end of the State Executive Council meeting presided by the governor in Asaba.

Ifeajika explained that the review became necessary sequel to sustained requests by contractors who had complained of the rising cost of materials and inflationary tendencies in the nation’s economy as well as additional works introduced on the projects.

According to him, the council reached the decision to approve the upward review of the projects to ensure that they were completed as scheduled.

He listed some of the projects as Phase I and Phase II of Flood Control Measures in Uwvie and Effurun, whose values were reviewed from the contract of N7.46billion to N8.4billion and from N7.24 billion to N9.06 billion, respectively.

“In Asaba, the council approved an upward review of the rehabilitation of Onaje Street, Nwanze Street and Kwekeagbo Street by N899.50 million, from N334.99 million to N1.23 billion.

“The access road to Federal Housing Estate in Ugboroke in Uwvie Local Government Area has been reviewed from N525.41million to N656.45 million, and the Ekuku-Agbor and Obi-Agbor roads contract was reviewed upward, from N1.36 billion to N1.60 billion.

“At Dennis Osadebay University, Asaba, the construction work at the Faculty of Agriculture got an upward review to the sum of N3.62 billion from the initial cost of N1.8 billion, largely due to additional works on the projects and high cost of materials.

“The council also approved the upward review of the contract value for the construction of James Ezechi Street in Okpai in Ndokwa East Local Government Area from the cost of N662.07 million to N799.81 million.

“Also approved, is the replacement of Niki Tobi Road with Esanma Grammar School Road in the contract for the construction of Esanma Grammar School Road and Market Road in Bomadi Local Government Area and its re-appraisal from N506.83 million to N706.21million,” Ifeajika said.

The governor’s spokesman added that the executive council ratified the variation of prices of the contract sum of the flyover at Koka junction, Asaba, on the Asaba-Benin Expressway to a new rate of N10.35 billion from N9.77 billion.

“Also, an upward review of drainage channels in Owa-Alero and its environs from N5.99 billion to N8.08 billion was approved.

“The construction work on the flood control channel by St Patrick’s College, West End Secondary School, Uche Medua Ugeh Close to Amilimocha Stream in Asaba has been reviewed upwards from N3.20 billion to N5.68 billion.

“Also reviewed is the Sector C2 of the Ughelli-Asaba dual carriageway, which went up to N13.56 billion from N12.47billion.

“Exco also reviewed the construction of Oviri-Olomu and Egodor road in Ughelli South and Burutu Local Government Areas by N1.04 billion, from N1.86 billion to N2.91billion,” he said.

Ifeajika further said that Exco gave approval for the re-award of the contract for the abandoned construction of Udu Harbour Market in Udu, with 600 lock-up stores, police post, bank, administration office, warehouse, borehole, abattoirs, slaughter ground, cattle ranch, external electrification, three gatehouses, generator and four toilets at a total cost of N2.52 billion, including consultancy fee.

“A fresh approval was given for the construction of internal roads in Kokori, Ethiope East Local Government Area at the cost of N569.02 million.

“There’s is also approval for a cottage hospital in Ovwor-Olomu, Ughelli South at the cost of N375.92million.

“There was also an approval of the construction of Achoja-NTA road in Ekiugbo, Ughelli North Local Government Area to the tune of N675.70 million, to be executed in 12 months.

“Exco also gave approval for construction of a road linking Ibusa and Okpanam from Okpanam junction on the Asaba-Benin Highway to Asaba-Ibusa Road at the cost of N4.16 billion and directed that the contract should be awarded.”

Ifeajika also told journalists that Exco approved the implementation of second phase of Delta State Youth Empowerment Programme (ICT-YEP) under the Ministry of Science and Technology for 575 persons to be selected on the basis of 23 persons from each of the 25 local government areas in the state.

He stated that Ordinary National Diploma (OND) is the minimum qualification for the Self-Employment segment of the programme while HND and first degree are minimum for the Start-Up Academy category.

“Exco also ratified an earlier approval by the governor for the release of N300 million for accreditation of programmes at the Delta State School of Marine Technology, Burutu,” he stated.