Damilola Shittu – Abuja
The Federal Executive Council (FEC) meeting yesterday approved N1.4 billion for the design of 12-floor building design for the Department of Petroleum Resources (DPR).
The Minister of State for Petroleum Resources, Ibe Kachikwu briefed State House correspondents at the end of FEC meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.
He was with the Minister of Information, Lai Mohammed and Minister of Trade and Industry, Okechukwu Enelamah after six hours meeting.
The contract, he said, is for the design of the head office of DPR in Abuja, which is currently situated in Lagos State.
‘Today we got the approval to begin the process to relocate them to Abuja.” he said
When asked if the sum was not too much for designing the building, he said that it only represented about 2% of the proposed N35 billion cost of the building.
He said: “FEC approved 1.4 billion for the design of DPR Head office in Abuja. The contract was awarded to Messers Arteck Practice Limited to design a 12 floor building at a plot which has already been allocated to by the FCT.
“They are currently based in Lagos and are the regulatory and supervisory arm of the Ministry of Petroleum, and is instrumental in terms of income generation. It will enable DPR move to Abuja.” he said
On the seeming high cost of the design, he said: “The contract was awarded to DPR tenders board, their bid was the lowest, the highest bid was about N3 billion. The total projected potential cost for the building when it is done is about N35 billion.
“So if you look at that as a percentage of the work, it is absolutely insignificant, in international terms it is very very justifiable, it is less than two per cent.”
He added “The FCT did mention in our deliberation that because of the new zoning policies, the previous plan which was to build a car park of another five floors along with the 12 floors have to be changed a little bit because they are taking possession of additional green area that were assigned to them.
“So they will build a lot of parking … within the building. So I think because of the amount of work to be done and in line with international practice, it is quite frankly very reasonable.
“Let me also say that part of the programmes we have pursued in the ministry, is how to get a lot of our parastatals to become independent and self financially generating agency and so get out of federal budget. ….has done that, DPR is the one to do that next.
“So a lot of funding for this development is going to come out of DPR itself not out of federal budgeting.
“The plan is that if we continue the way we are doing, a lot of federal agencies will be out of federal budgeting and be self-reliant. Be it PPPRA, DPR, PEF, that is the game plan. So far we have exited NCMB and we are near existing DPR and then PEF.” he stated
Enelamah said that FEC also approved N1.55billion consultancy contract for the Government Enterprise and Empowerment Programme (GEEP), which is part of the Federal Government social investment programs.
He said: “We got an approval from the Federal Executive Council to award a contract to engage a Program Management Office Consultant and System Provider, for the GEEP at N1.556billion.
According to him, the contract which is for providing services for 4.6 million people, is a viable contract.
He also pointed out that the program has provided credit for over 1.5million Nigerians
Enelamah also said that FEC approved the establishment of a Committee to come up with alternative ways to add to what government is doing in financing infrastructure.
He said that it will be a committee of Ministers and ICRC, NSIA, Africa Finance Corporation and some private sector players.
Stressing that he will Chair the committee, Enelamah said that other members include Minister of Finance, Minister of Power, Works and Housing, Minister of Budget and National Planning, Minister Transportation, Minister of Water Resources and Minister of State for Aviation.