₦airaland Forum

http://www.thisdaylive.com/articles/nsia-affirms-commitment-to-second-niger-bridge-project/219582/

07 Sep 2015
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Chika Amanze-Nwachuku

The Nigeria Sovereign Investment Authority (NSIA) has restated its commitment to the Second Niger Bridge project, assuring that barring unforeseen problems the bridge would be constructed and delivered in 48 months.

The agency also said only $2.21million has so far been expended on consultancy for the project as against the N140 billion declared by Governor Adams Oshiomhole of Edo state. Oshiomhole had alleged that the NSIA had spent about N140billion on consultancy. He also claimed that $700 million was surreptitiously moved from the Sovereign Wealth Fund (SWF), for the second Niger bridge project.

Former President Goodluck Jonathan, last year performed the groundbreaking ceremony for the construction of the bridge, with the construction billed to be completed in 48 months.

The 11.9km length bridge was structured under the Public Private Partnership (PPP) arrangement, using Design, Build, Finance, Operate and Transfer (DBFOT) model.

Acting through its wholly owned subsidiary, NSIA Motorways Investment Company (NMIC), the NSIA is collaborating with the Federal Ministry of Works and Julius Berger Investment (JBI) as joint sponsors on the financing, development and construction of the bridge.

The project was initially estimated to cost N108billion excluding duties and VAT, (if duties and VAT are included, the project cost is N117.9billion). This was equivalent to $700million at the then prevailing exchange rate of N154/$. The final project cost would naturally be affected by exchange rate fluctuations and other variables.

Providing an update on the project, Managing Director and CEO of NSIA, Mr. Uche Orji, explained that $247,586, about N49 million has been spent on the due diligence phase of the project while $1.96 million, about N3.9 billion has been spent on the project development phase as consultancy services fees. These services, he noted, included work in legal, financial, technical and engineering and environmental social impact advisory, provided by various credible and well-recognised Nigerian and international professional services firms.

Orji said: “To date, NSIA has spent a total of US$2.21 million on consultancy services on the two phases of the Project – US$247,586 on the due diligence phase; and US$1.96million on the project development phase. These services have included work in the following areas: Legal, Financial, Technical & Engineering and Environmental & Social Impact Advisory, provided by various credible and well-recognised Nigerian and international professional services firms.”

According to Orji, Africa Finance Corporation (Nigeria) was engaged as financial advisor; Clifford Chance, UK and Templars (Nigeria) as legal advisors; Allot Nigeria Ltd and Takedo International, UK as traffic advisors; WSP Group Africa, (South Africa) as technical advisor and Aurecon (South Africa) as Environmental consultant.

He explained that total consultancy services cost so far is less than one per cent of the estimated project cost. He said: “Whilst there is no standardised benchmark for transaction costs, the European Investment Bank’s Economic and Financial Report No. 3 of 2005, indicates that, on the average, the level of transaction cost for the procurement phase of PPP projects is over 10 per cent of the capital value of the relevant project in Ireland, the Netherlands, Portugal, and the United Kingdom.
This EIB survey estimate does not include costs related to contract monitoring and renegotiation in the operational phase of the relevant projects.”

Under the PPP arrangement for the project, the federal government made a N30 billion commitment to the project while the consortium is expected to raise the remaining funds for the project from Nigerian and international lenders and equity providers. Orji confirmed that the government has so far released N18billion of which N10 billion has been disbursed for early construction works.

The agency’s technical consultants on the project, according to Orji, have been instrumental in value-engineering the project and reducing the initial project cost to the current level.

“NSIA has put in place a multi-stage approval process for all disbursements, and which all payments involving construction are made only after approval by a third party engineering firm, which matches work completed against amounts due.


“NSIA has had promising engagement with potential lenders, which include many international investors. NSIA is rated by the US-based Sovereign Wealth Fund Institute as one of the most transparent sovereign wealth funds in the world. NSIA continues to uphold and abide by the highest standards of corporate governance, accountability and integrity.

The NSIA was rated by the US-based Sovereign Wealth Fund institute as one of the most transparent sovereign wealth funds in the world.

Nice

Great oooooooo

Ok

at times wonder all these fund they are mentioning like $2 million 200billion, is it like it a small money they can consume just for a project whereas we struggling for money to eat, i de pray to God for 1billion yet.. .. i wish
soon that project will be abandoned

visit my signature

Can anybody verify on going work on site for the Second Niger Bridge? U cannot trust these tabloid newspapars.


chino, agbaworo, asha and buddahmonk over to you.

that's good
Need anything from Jumia? Contact me now!

Work is ongoing at the Onitsha 2nd Niger bridge..

tunjion:
Can anybody verify on going work on site for the Second Niger Bridge? U cannot trust these tabloid newspapars.


chino, agbaworo, asha and buddahmonk over to you.

chino11:
Work is ongoing at the Onitsha 2nd Niger bridge..

Thanks for the confirmation. Over to u lalasticlala, oam4j, afam4eva fp.

Providing an update on the project, Managing Director and CEO of NSIA, Mr. Uche Orji, explained that $247,586, about N49 million has been spent on the due diligence phase of the project while $1.96 million, about N3.9 billion has been spent on the project development phase as consultancy services fees.

@ the bolded. Something wrong with the exchange rate.