.. approves N158 bn contract in agreement with Dangote for service lanes linking Lekki Deep seaport to Shagamu-Benin expressway
Oredola Adeola
The Federal Executive Council (FEC) has approved a revised contract cost of N280 billion, up from the N199.92 billion agreed upon in 2021, for the completion of the 35.7 km Bonny-Bodo Road project in Rivers State, including the construction of bridges across the Opobo Channel.
This adjustment follows persistent delays by Julius Berger Nigeria Plc in finalizing the remaining 16% of the project, which is being carried out under a tripartite agreement with Nigeria LNG limited.
This decision was among the key highlights of the FEC meeting held on Monday, September 23, 2024, at the State House Villa, presided over by President Bola Tinubu.
The announcement was confirmed by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, in a statement after the meeting.
The contract for the Bodo-Bonny Road was initially awarded in 2014 for N120 billion and revised in 2021 to nearly N200 billion.
The FEC has now approved a further increase to N280 billion to cover the completion of the project.
In April 2024, Julius Berger Nigeria Plc requested an additional N28 billion for the project, citing rising diesel prices, construction material costs, and significant fluctuations in the exchange rate since the original N120 billion contracts in 2015.
At that time, diesel was priced at N350 per litre, and the exchange rate was N305 to the dollar.
However, Nigeria Liquefied Natural Gas (NLNG), which had already contributed N60 billion to the project, firmly opposed the additional request, insisting that all parties had previously agreed to cap the project cost at N199 billion.
In April 2024, Minister of Works David Umahi supported NLNG’s stance during a meeting with Julius Berger’s Managing Director, Lars Richter, and the Bodo-Bonny Road Peace Committee.
He warned that the contract could be terminated if the company did not accept the government’s counter-offer of N20 billion.
Advisors Reports’ check showed that the 35.7km Bodo-Bonny Road Project will be the first road to connect oil-rich Bonny Island to mainland Rivers State, runs through four local Governments in Rivers State, with challenging environmental factors like a 7km low-lying marshy land with tidal movements.
The communities expected to benefit from the projects are Bonny, Ogoni, Okrika, Eleme Andoni, and Bodo, all in Rivers State.
The Council also sanctioned a contract valued at N158 billion for the construction of service lanes connecting the Lekki Deep Sea Port to the Shagamu-Benin Expressway via Epe to facilitate the efficient transport of petroleum products and other goods from the Dangote Refinery and the Seaports by improving accessibility, reducing congestion, and enhancing safety for trucking operations.
The contract will be awarded to Dangote Industries as part of the Federal Government’s Road Infrastructure Development Fund and the Refurbishment Investment Tax Credit Scheme.
This vital infrastructure project aims to enhance access to the port and improve transportation efficiency in the region.
