Did the Delta State government offer Julius Berger Nigeria Plc contract to construct a new airport at Warri? How was the contract awarded? Why did the construction firm declined to accept such a plum job? Will the government settle for a local contractor for the project?

These and more questions are begging for answers as both parties disagree sharply on the award of N80 billion contract for the construction of a new airport in Warri, a major oil city in the state.

While Julius Berger denied knowledge of such a project, the Delta State government claimed the firm turned down the project citing insecurity as a major reason.

Saturday Independent gathered that the decision to have another airport at Warri, in addition to the existing one at Asaba, the state capital, was informed by the refusal of Shell Petroleum Development Company (SPDC), to allow the government expand the Usubi airstrip. The Usubi airstrip cannot accommodate bigger aircraft.

Transport by air into Warri is through Usubi airstrip which is located in Usubi, a nearby town.

Arik Air and Aero Contractors are some of the main airlines operating commercial flights on this route while major oil companies like Shell and Chevron use the airport for transportation of their staff to offshore locations.

Sources said the government had earmarked the sum of N80 billion for the new project which is expected to be constructed in two phases. The first phase is expected to cost N34 billion.

Though, it was not clear how Julius Berger got the contract since it was not advertised, sources said that the government was ready to mobilise the contractor to the tune of N850 million, being 25 percent of the first phase of the contract.

However, it was learnt that when members of the Delta State Executive Council met recently to deliberate on the project, Governor Emmanuel Uduaghan allegedly told them that Julius Berger had turned down the offer on security grounds.

However, another source had it that the reason given by the Governor might not have gone down well with some members of his cabinet.

Their fear is that with the rejection of the contract by Julius Berger, the Governor might be forced to award the contract to a local contractor. Asaba International Airport was built by a local company, ULO Construction Company.

A top official of Julius Berger, who pleaded for anonymity, faulted the claims by the Delta State government saying that it is not true that the government offered the company the job.

“It is not true that they offered us such a job. How was it done? Was the job advertised? Who and who bidded for it? It is pure blackmail to say that we rejected such a job because of insecurity. The head of our technical department and other top officials of Julius Berger are not aware of anything like that. Has the Delta State government forgotten that we have a mighty office at Ekpan where we have a lot of expatriates? It is just an attempt to cover up something that is only known to the state government,” the official stated.

But the Delta State Commissioner for Information, Mr. Chike Ogeah, insisted that Julius Berger declined the offer.

He told Saturday Independent that the construction firm refused the job saying that it would not be the first time such a thing would happen between the state government and the company.

Ogeah said restive youths in Warri often kidnap expatriates working there because they don’t have jobs to do.

“The greatest problem in Delta is the issue of kidnapping. The oil companies have neglected the region in terms of security. That is one of the main challenges of government and certainly it is not only in the purview of the state. It is the duty of the Navy, Police and Army to provide security in the region,” he said.

Ogeah explained that though the contract for the “expansion of the Warri airport is yet to be awarded,” he confirmed that “it was endorsed at the exco”.

In his words, “there is a lot of background to it”.

When informed that Julius Berger denied knowledge of such a contract, the Commissioner said “We have to do it. That is why we are government. We have to deliver a first class job. Julius Berger has rejected roads and other contracts from us because of insecurity”.

Culled from Independent

source: http://www.osundefender.org/?p=55593

The first phase is expected to cost[b] N34 billion.
[/b]
Though, it was not clear how Julius Berger got the contract since it was not advertised, sources said that the government was ready to mobilise the contractor to the tune of [b]N850 million, being 25 percent of the first phase [/b]of the contract.


How is this possible?

D kind billions delta state govt is calling baffels me! Can't they take just half of dis money and do massive road construction all over d state...they have two airports all ready for heavens sake! Why waste huge money on dis un necessary project!

Oh! So it's gone up to 80 billion from last weeks 30 something billion? Seems like the cost increases by the minute.

80 billion naira.....that's more than $500 million.

Nigeria is being plundered

billante: D kind billions delta state govt is calling baffels me! Can't they take just half of dis money and do massive road construction all over d state...they have two airports all ready for heavens sake! Why waste huge money on dis un necessary project!

No mind the useless governor, roads in sapele, warri, ughelli north, ughelli south, ethiope east and west are gone, some need dualisation instead he's wasting money on projects that are not needed the most. From what IMO state is doing, N4bn should have all our roads fixed. Uduaghan Is a mad man. I am waiting for praise singers led by UYCO to surface, one day you guys will be executed like petty criminals.

blink182: No mind the useless governor, roads in sapele, warri, ughelli north, ughelli south, ethiope east and west are gone, some need dualisation instead he's wasting money on projects that are not needed the most. From what IMO state is doing, N4bn should have all our roads fixed. Uduaghan Is a mad man. I am waiting for praise singers led by UYCO to surface, one day you guys will be executed like petty criminals.

GBAM