The Presidential Projects Assessment Committee has said that the Federal Government has spent N7.78tn on 11,886 ongoing and abandoned projects nationwide.


Presenting its final report to President Goodluck Jonathan at the Presidential Villa, Abuja on Thursday, the committee headed by Mr. Ibrahim Bunu, mentioned the Ajaokuta Steel complex which has been ongoing for 30 years as an instance of one of such abandoned projects.


It said, “There are many uncompleted projects where trillions of Naira has already been spent, and abandoned, prominent example of which is the 30- year- old multi-billion dollar Ajaokuta Steel company Project.”


According to the committee, “as at now, $4.5bn (about N675bn as at Thursday) which have been spent (on the steel complex) lie wasted.”


The committee therefore urged Jonathan to address the issue of the Ajaokuta Steel Project in line with his transformation agenda.


It stated in a summary of the report made available to journalists in Abuja that out of the N7.78tn spent on the projects, N2.696tn had been paid to contractors.


The PPAC was set up by President Goodluck Jonathan on March 4, 2010, and charged with the responsibility of assessing all ongoing Federal Government projects in the country.


The report noted that the actual number of ongoing projects could be 20 per cent higher than the reported 11,886.


It added that the total sum involved in their execution also surpassed the N7.78tn contained in the report of the committee headed by Mr. Ibrahim Bunu.


But the report did not give the exact number but it stated that the actual amount could be in the neighbourhood of N8tn.


According to the report, “the figures (11,886 ongoing projects being executed in the sum of N7.78tn) represent the total responses received from the ministries, departments and agencies (MDAs), some of whom for reasons best known to them, failed to respond to the committee’s request for data on ongoing projects.”


The committee noted that “corruption in the handling of projects by many self-seeking officers and contractors has led to massive inflation of costs and undermined the legitimacy of their monitoring and supervision responsibilities.”


Besides corruption, the committee identified “widespread institutional mediocrity”, inadequate budgetary allocation and high cost of financing among the ills plaguing the execution of capital projects in the country.


Part of the report reads, “Following the committee’s indepth assessment of many of the projects, we take no joy in confirming that there is indeed evidence of large scale, widespread institutional mediocrity, deficiency of vision and a lack of direction in project management, which result in poor conceptualisation, poor design and faulty execution.


“Needless to add that, this has resulted in avoidable losses of billions of Naira to the Federal Government.”


Highlighting the problem of inadequate budgetary allocation, the report noted that, “as a matter of routine, contracts are awarded without securing the required funds in the annual budget to ensure their timely execution.”


The report said, “Now, with N8tn commitment, and on the basis of the prevailing allocation of about N1tn for capital projects annually, it will take the next eight years or so for the Federal Government to complete existing ongoing projects, provided there will be no inflation within the period.”


In addition to corruption, the other factors, according to the report, include “consistent delays in payment to contractors leading to massive claims for overhead costs, interests and additional costs and poor coordination between government officials at all levels in the planning and execution of projects.”


Others are “ poor planning and conceptualisation of projects resulting in costly variations and inefficiency in the implementation and management of projects, and lack of adequate and efficient municipal services such as the provision of electricity, transport, security and water supply, all of which contractors have to arrange privately.”


The committee also reported that almost all ongoing projects were not subjected to and taken through the normal project cycle of conceptualisation, planning, the undertaking of full economic, social and environmental impact analyses, design and procurement, contract execution and on to maintenance.


Also, the report said that in most instances, the Bureau for Public Procurement Act was undermined and subverted at the Ministries, Departments and Agencies as evident in numerous cases where, after bids were received, it took between six months to two years or even five years, before a project was finally awarded.


The PAC added that on several occasions, ‘No Objection Certificates’ issued by the BPP were revoked without any justification.


It said, “There were also cases of disqualification of duly pre-qualified contractors in questionable circumstances, including the mutilation and substitution of bid documents, thereby rendering such bids non-responsive.


“On the other hand, in many other situations, contractors were allowed to draft contract agreements, which, not unexpectedly, they did in their favour against the interest of government.”


Suggesting remedies for the unsavory situation, the PPAC recommended, among others, “the need to streamline and downsize the ongoing projects to a manageable proportion through a well thought out realisation process.”


The committee also urged the government to prioritise and classify the ongoing projects into three.


The three, it said, should be, “Those to be completed immediately due to economic impact or nearing level of completion; non-commercially viable but socio-economically relevant projects that should be completed using low interest funds from appropriate international financial institutions; and those that are not commercially-viable, which “should be left to find their own level within the transformation agenda.”


As a way out of the problems, the PPAC recommended effective planning and coordination between government, contractors and consultants, crackdown on corruption, and enforcement of compliance with standards and specifications.


A statement from the Director of Information in the Office of the Special Adviser to the President on Media and Publicity, Mr. Musa Aduwak, said Jonathan expressed the concern after the Presidential Projects Assessment Committee presented its report.


“The huge number of on-going projects all over the country is of concern, considering the financial implications,” he said.

http://www.punchng.com/Articl.aspx?theartic=Art201106036321170

unbelievable

where did all the money go

This is what you get when you let the federal government take over state's and local government's responsibilities.

Fashola and other working governors should wait till the steel mill factory works, then wait for another 20yrs for some dumb head to know how to design a train before building rail transportation system in Nigeria.

e no go beta for those western countries that forced us together as Nigeria - no, e no go beta for them at all! Oh my Biafra come thee thither!

If you visit Ajaokuta Steel Company (knowing what the potentials are), you will weep like a baby. The enormity of the waste is beyond imagination.

Holy Moses!how long will it take to get to the promisedland?

What really is the problem with Ajaokuta? Is it a problem of administrative in competence or lack of technological knowhow?

@Dustydee, all of the above plus political problems. In fact I cannot even begin to list all the possible problems but one thing is for sure. The problems are not without solution. We only need someone with balls of steel and an iron hand to break the yoke. I have been to the place and I can tell you that the situation is unbelievable. It is one of the worst examples of how to run a business on earth.

They have never completed that company. Its sad because that would have been a very good source of income and also very good source of power supply in Nigeria. You will weep when u see the waste of the place that has really good potentials.

@ nimma, you are right. Have you been to the place?

I cannot even describe how terrible it is. You need to see it live to understand how bad it is. It is like setting money on fire purposely.

Why am i not surprised. Pdp is a wasteful party that does not understand the concept of sustainable development and strategic investment. No country can claim to be developing or developed without having at its foundation this core principles. PDP the miscreant!!

Na today.


I dey laugh oo.

Ajaokuta was sold by OBJ to my former company, and believe me, that company has all it takes to revive Ajaokuta and make it profitable, before u could say jack, they revoked the licence given to the company due to political interest and other selfish interest concerns.
that's why it is still like that wasting.
God help Goodluck!

There goes the political factor. Which company is that? BTW, are you referring to the Indian company?

the waste their is just unimaginable, if we get it right in Ajaokuta,  then the income that would be generated there will be far more than the income from the oil and gas industry, besides, the complex has the capacity to accomodate all the engineers this country has ever produced. I was there as a banker with one of the old generation banks.

If Ajaokuta could be made to function optimally, the unemployment rate would have drastically reduced. Those jobless Boko Haramites would have preferred to earn a living there than haul bombs around. You need to see the capital investment on ground in that place. They also enjoy almost 100% power availability. It is unbelievable. The houses built there for workers have been occupied by animals and plants. Damn!!! If China had that in their country, you cannot imagine what they would have done with it.

efisher:

@Dustydee, all of the above plus political problems. In fact I cannot even begin to list all the possible problems but one thing is for sure. The problems are not without solution. We only need someone with balls of steel and an iron hand to break the yoke. I have been to the place and I can tell you that the situation is unbelievable. It is one of the worst examples of how to run a business on earth.

This is why the Nigerian government should never get involved in business.  All they do is to use it as a means of siphoning money into their pockets.  That is why public private partnerships and privatisation are the way forward for Nigeria's development, because if the project doesn't work the investors who have a direct personal interest in the viability of the project, lose money big time.    Government officials on the other hand have no such interest and only care about how much money they can steal from the project.

Don't worry. That money has helped 3 generations of hungry politicians put food on the table for their familes.

That's money well spent if you ask me.

There goes the political factor. Which company is that? BTW, are you referring to the Indian company?

yes!

I served in Ajaokuta back then when it was managed by the so called SOLGAS from the US. Anybody going there will have a very heavy heart at the level of decay, waste, 'untapped potentials' that we had by way of that complex. There is a special rail line in there linking the complex to Enugu the coal city and Itakpe the Iron ore town. Underground passages stretch several meters all over the complex and the heavy machinery underground are far more than what they have on the surface. I dont know about now, but back then they were adding much power to the national grid electricity wide.
From stories that fly around, the bulk of the problems started when the Russians who designed it left; because they understood and planned the whole thing. The problem with them was that everything was in Russian language - manuals, circuit diagrams and there was a lot of hoarding of info from the Nigerian folks back then. Also a problem is the Government's ignorance of the place and the way forward in making it work; this is apart form the tussle for ownership of the land itself - a big rift between the Igbirras and the Igalas who claim it is their land.
One of the greatest sections of the complex is meant to be the Blast furnace from which casting and all forms of modelling can be done but to date, it is not functional. I learnt that when the place was working briefly after it was commissioned back then, companies used to come with prototype designs for boats, large industrial frames - name it; the capabilities were just too much. The workers there are the most demotivated Nigerian workers - they go to work daily with nothing much to do - sit around and recount the good old days with the Russians, when things were still good; they generated their light, had water 24/7, food very cheap because of the farming communities there and they had lots of expat communities there to.
Its a big shame on naija anyway - we have leaders who take so much pride in intimidating the populace but are empty upstairs. Must the Govt manage everything. Kenya some yrs back made a renowned nuclear scientist to be in charge of their power ministry because the man went to UAE to start up a nuclear reactor their upon invitation, and till date light never blinks in UAE. Such was the idea that Kenya had and so invited him over but in Nigeria it never happens. We have experts the world over who have solutions and potentials to solving so many challenges we have but instead it is made a political affair and all sorts. God help us

May God help Ngeria.
Our Leaders have killed this country.

Gaius67:

I served in Ajaokuta back then when it was managed by the so called SOLGAS from the US. Anybody going there will have a very heavy heart at the level of decay, waste, 'untapped potentials' that we had by way of that complex. There is a special rail line in there linking the complex to Enugu the coal city and Itakpe the Iron ore town. Underground passages stretch several meters all over the complex and the heavy machinery underground are far more than what they have on the surface. I dont know about now, but back then they were adding much power to the national grid electricity wide.
From stories that fly around, the bulk of the problems started when the Russians who designed it left; because they understood and planned the whole thing. The problem with them was that everything was in Russian language - manuals, circuit diagrams and there was a lot of hoarding of info from the Nigerian folks back then. Also a problem is the Government's ignorance of the place and the way forward in making it work; this is apart form the tussle for ownership of the land itself - a big rift between the Igbirras and the Igalas who claim it is their land.
One of the greatest sections of the complex is meant to be the Blast furnace from which casting and all forms of modelling can be done but to date, it is not functional. I learnt that when the place was working briefly after it was commissioned back then, companies used to come with prototype designs for boats, large industrial frames - name it; the capabilities were just too much. The workers there are the most demotivated Nigerian workers - they go to work daily with nothing much to do - sit around and recount the good old days with the Russians, when things were still good; they generated their light, had water 24/7, food very cheap because of the farming communities there and they had lots of expat communities there to.
Its a big shame on naija anyway - we have leaders who take so much pride in intimidating the populace but are empty upstairs. Must the Govt manage everything. Kenya some yrs back made a renowned nuclear scientist to be in charge of their power ministry because the man went to UAE to start up a nuclear reactor their upon invitation, and till date light never blinks in UAE. Such was the idea that Kenya had and so invited him over but in Nigeria it never happens. We have experts the world over who have solutions and potentials to solving so many challenges we have but instead it is made a political affair and all sorts. God help us

Interesting.

efisher:

@ nimma, you are right. Have you been to the place?

I cannot even describe how terrible it is. You need to see it live to understand how bad it is. It is like setting money on fire purposely.

Gaius67:

I served in Ajaokuta back then when it was managed by the so called SOLGAS from the US. Anybody going there will have a very heavy heart at the level of decay, waste, 'untapped potentials' that we had by way of that complex. There is a special rail line in there linking the complex to Enugu the coal city and Itakpe the Iron ore town. Underground passages stretch several meters all over the complex and the heavy machinery underground are far more than what they have on the surface. I dont know about now, but back then they were adding much power to the national grid electricity wide.
From stories that fly around, the bulk of the problems started when the Russians who designed it left; because they understood and planned the whole thing. The problem with them was that everything was in Russian language - manuals, circuit diagrams and there was a lot of hoarding of info from the Nigerian folks back then. Also a problem is the Government's ignorance of the place and the way forward in making it work; this is apart form the tussle for ownership of the land itself - a big rift between the Igbirras and the Igalas who claim it is their land.
One of the greatest sections of the complex is meant to be the Blast furnace from which casting and all forms of modelling can be done but to date, it is not functional. I learnt that when the place was working briefly after it was commissioned back then, companies used to come with prototype designs for boats, large industrial frames - name it; the capabilities were just too much. The workers there are the most demotivated Nigerian workers - they go to work daily with nothing much to do - sit around and recount the good old days with the Russians, when things were still good; they generated their light, had water 24/7, food very cheap because of the farming communities there and they had lots of expat communities there to.
Its a big shame on naija anyway - we have leaders who take so much pride in intimidating the populace but are empty upstairs. Must the Govt manage everything. Kenya some yrs back made a renowned nuclear scientist to be in charge of their power ministry because the man went to UAE to start up a nuclear reactor their upon invitation, and till date light never blinks in UAE. Such was the idea that Kenya had and so invited him over but in Nigeria it never happens. We have experts the world over who have solutions and potentials to solving so many challenges we have but instead it is made a political affair and all sorts. God help us

efisher:

If you visit Ajaokuta Steel Company (knowing what the potentials are), you will weep like a baby. The enormity of the waste is beyond imagination.

Thought I was the only one. If you want to see grown men cry, take them to Ajaokuta Steel Rolling Mill. I tell you. Those who campaign against graft should conduct guided tours of that plant and urge tourists to take along their tissues. Those of us supporting one leader or the other and bashing one or the other will realise ALL our past leaders have fallen short of the basest standards or humanity when it comes to that project. It is a monument , a theme park to collosal waste, corruption, ineptitude and all that has made this country what it is.

Just take a tour. I did and I cried and I never want to ever go back there all the days of my life.

Wow! What is the government waiting for? If this Ajaokuta will solve part of Nigeria's problems then what is stopping them,

We need the professional laborers to complete the project but unfortunately we only have engineers and professors, as you all know our engineers and prof are next to none.

The world is becoming a global village. If we cannot run the company, we can as well allow the Russians, Chinese or "Whoeverese" to run it under special local content terms. We stand to gain. All over the world, foreigners own and  run large companies outside their territory. If that is what it will take, why not go ahead. But I can assure you that we have Nigerians who can run it perfectly with little foreign input. FG is only being foolish about it.

Ajaokuta Steel!  

The Problem with Ajaokuta, is the same as every other thing in Nigeria. I have challenege people to point to 1 single sector that works in Nigeria, just 1, and you will simply find the answer you seek.

We allow the best to be ruled and lead by the worst. The same thing happend to Delta steel company. Waste beyong belief. I remember the start of DSC in the late 702 / 80's. very promising, but was soon run down by mismanagement, greed and corruption.

Simple solution, sell the damn things and let the private sector come in and run it.

enyojo:

Ajaokuta Steel!  

kevoh:

Wow! What is the government waiting for? If this Ajaokuta will solve part of Nigeria's problems then what is stopping them,

It all depends on what you call that place. What it was created for is yet to be understood so how would anyone begin to contemplate how just to tackle it. So when successive governments 'hear' of the place it perhaps sounds like the mythical 'eldorado' to some or like a pilgrimage to others. Just go there for yourself. Not hearsay. Believe you me just go there.

If you want to get to the origins of Christianity or Judaism you go to Jerusalem right? or you go on pilgrimage to Mecca for the Muslims or to the Vatican for the Catholics or you want to find the origins of ancient American civilization you get down to Azteca or you wish to know what makes the Asian tigers of today and get lost in the deserts of inner Mongolia, yes to the birth place of Ghengis Khan. If you wish to know the origins of institutionalized graft in Nigeria today and obtain an answer for why our house leaders do not consider a third of a trillion naira over four years as anything of concern then go the spiritual home of all things Nigerian corruption - 'Ajaokuta Steal Meal'.

All governments have faithfully paid homage and carried our collective national endowment to sacrifice to this 'god of iron'. ALL GOVERNMENTS since 1982 without exception. It is said if you balance Nigeria on a pin tip the most like spot it will hit is that plant. Right in the middle. It is the axis on which this nation balances. If crude oil business is bad. This is badder. Real bad. All tribes and tongues have eaten there to their heart's content. It is a national tragedy.

675 billion, thirty years of waste. I think a good samaritan should just divert a nuclear tipped tomahawk to that place and end our misery. What can I say. Its sad.

That is what you get when you make an Alhaji with a PhD.d in islmic studies the Chief Engineer only in Naija. we can't even make a nail

MPEROR:

That is what you get when you make an Alhaji with a PhD.d in islmic studies the Chief Engineer only in Naija. we can't even make a nail

that is silly

what Alhaji are u talking about