FG seeks 30% advance payment from NLNG for Bodo-Bonny road

• Published On: 07 October 2024 at 18:34

For the purpose of accelerating the Bodo-Bonny road project in Rivers State, the Federal Government has proposed that Nigeria LNG make an advance payment of thirty percent.

After receiving approval from the Federal Executive Council, this initiative was taken in order to increase the funding for the project to N280 billion.

David Umahi, the Minister of Works, made the announcement about this new development during a meeting with Julius Berger (Nig.) Plc, as described in a statement that was posted on the website of the Ministry.

The purpose of the advance payment is to decrease the amount of time needed for the construction process and to enhance the infrastructure in the area.

Umahi emphasized how important it is for Julius Berger to mobilize in multiple locations in order to meet the extended deadline of September 2025. Construction is scheduled to begin at least from three different locations.

He explained that the proposed advance payment from NLNG, which is thirty percent of the total amount, is intended to combat inflation and ensure that the project continues to make steady progress.

The goal of this strategy is to keep the fixed contract sum of N280 billion and to prevent any further delays in the construction of the road that connects Bodo and Bonny.

"We do not believe that we are facing any problems," he stated. We have reached an agreement on the N280 billion, which is the new fixed contract sum, and then for a completion period of twelve months; this is an additional twelve months over the original contract. As a result, we require that you mobilize in a minimum of three different communities. It is for this reason that we will be able to complete the task within these twelve months.

We are required to include a proposal for an advance payment of thirty percent in the letter that we send to NLNG. This is to ensure that they have sufficient funds to accommodate any form of variation or inflation.

Following the conclusion of the meeting, Julius Berger was presented with the revised Letters of Award, which contained an outline of the most important aspects of the contract, as stated in the statement. In the event that the Ministry does not formally review the agreement, it will automatically expire at the conclusion of the period that was agreed upon. The agreement is fixed, firm, and non-transferable.

This action reaffirms the government's dedication to ensuring that the Bodo-Bonny road project is carried out in a precise and timely manner.

Bonny Island will be connected to the mainland of Rivers State by means of a network of essential bridges and roadways as part of the Bodo-Bonny project, which was initially awarded in 2014 for a total of N120 billion and will be revised to a total of N199.9 billion in 2021. The project's objective is to significantly improve regional connectivity.

This project will span a distance of 34 kilometers and will involve the construction of thirteen bridges. Among these bridges, there will be three major structures, including a bridge that spans Opobo Creek that is one thousand meters long, nine mini-bridges, and a bridge that spans a pipeline.

It is anticipated that the construction of this infrastructure will enhance accessibility to Bonny Island, strengthen transportation links, and provide support for economic activities in the region.

Initially, the funding for the project was intended to be a collaborative effort between the Federal Government and Nigeria LNG (NLNG), with each party contributing fifty percent of the total costs.

On the other hand, Julius Berger's request for a revision to the budget in 2021 caused a temporary halt in the construction process, which resulted in setbacks for the construction project.