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The Nigerian federal government is considering its options regarding the construction of a second runway at the Nnamdi Azikiwe International Airport in Abuja.
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The project’s contract sum has risen to N532 billion.
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The government may revoke the contract with the China Civil Engineering and Construction Corporation (CCECC) due to the significant cost increase.
The federal government is considering its options regarding the construction of a second runway at the Nnamdi Azikiwe International Airport in Abuja, following a significant increase in the project’s contract sum.
According to sources at the Ministry of Aviation and Aerospace, the contract sum has risen to N532 billion, sparking concerns about the cost and potential fraud.
The contract was initially awarded to the China Civil Engineering and Construction Corporation (CCECC) in 2009.
Minister of Aviation and Aerospace Development, Festus Keyamo, had informed lawmakers during a budget defence session that the project’s cost had increased from N90 billion to N532 billion.
Keyamo described the contract variation as “fraud,” stating that the ministry was considering cancelling the contract and calling for fresh bids.
“The contractor in question is demanding a contract variation of N532 billion from the original sum of N90 billion. To us in the ministry, the said variation is nothing but fraud, leaving us with no option than to cancel the contract and call for fresh bids,” Keyamo said.
A source at the ministry confirmed that the government was in a dilemma over the project, stating that “the project appears to be becoming jinxed because you ask me, how do we get over N500bn which is about $340m for a single project?”
Another official revealed that the contractor had submitted a new proposal, reducing the project cost to around N300 billion.
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However, no decision has been taken on the contract yet.
Tunde Moshood, the spokesman to the Minister of Aviation, confirmed that the contractor had submitted a new proposal but added that the minister would soon meet with stakeholders involved in the project.
A spokesperson for CCECC, Mr Zane Peng, denied the reported contract sum, stating that “N532 billion is not right.”
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