Home News BPP okays Hitech to seek FEC’s approval of N1trn for 47.5km of Lagos-Calabar Road construction

BPP okays Hitech to seek FEC’s approval of N1trn for 47.5km of Lagos-Calabar Road construction

Bureau of Public Procurement grants Hitech to seek FEC approval over N1trn for Construction of 47.5km of Lagos-Calabar Road

The Bureau of Public Procurement (BPP) has granted Messrs Hitech Construction Company Limited the approval to seek the Federal Executive Council (FEC) to obtain over N1 trillion for the first phase of the Lagos-Calabar Coastal Road.

In the letter dated February 23, 2023, and titled “Certificate of ‘No Objection’ for Approval of Contract”, the BPP, having examined Hitech’s requests for issuance of “No Objection”, was approved to seek the FEC’s approval for the award of contracts.

Hitech’s demands, as examined and approved by the BPP, were N1.1 trillion, inclusive of 7.5% VAT, for the construction of the Lagos—Calabar Coastal Road Corridor, Phase 1; Section I: from Ahmadu Bello Way to Eleko Village Area in Lekki Peninsula.

In response, the BPP approved a project cost of N1.06 trillion, including 7.5% VAT, with a cost reduction of N33.8 billion.

However, regarding the source of project funds, the letter revealed, “Mr President approved the Phase 1; Section I of the Lagos—Calabar Coastal Road Corridor project shall be funded by the Federal Government” in a letter dated January 24, 2024, as forwarded by State House to the Ministry of Works for supervision.

According to the Minister of Works, Dave Umahi, the 700km project is expected to be completed in eight years, with a tentative sum of N15.356 trillion and a proposed toll-fee charge of N5,000 after commission.

Meanwhile, Umahi, in an interview featured on Channels Television’s Morning Brief programme, stated that “the contractor did not compete with other contractors while bidding for the project; rather, the contract was awarded to the company based on its track record, not on sentiments as being insinuated in some quarters.”

However, the contactor’s affiliation with the President remains questionable.

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