Obasanjo Awarded Abuja Rail Project Without Design, MOU- Senate Panel

Former President Olusegun Obasanjo awarded the Abuja Rail Project in 2007 with neither a design nor a Memorandum of Understanding (MoU), according to the Senate Committee on Federal Capital Territory (FCT).
The then Minister of FCT and current governor of Kaduna State, Mallam Nasir el-Rufai, was said to have signed the contract based on an uncalculated estimate.

The revelation came as the committee discovered the contract, which stood at 60.67 kilometres, was inflated by $10 million (about N2 billion at N200 per dollar) per kilometre even as the length was later reduced to 45 kilometres without the refund of the cost for the 15.67 kilometres dropped.

To this end, the Senate committee, led by Dino Melaye has demanded the refund of the of $195,878,296.74 ( about N392 billion at N200 per dollar) being the amount for the 15.67 kilometres cut out from the Chinese Civil Engineering Construction Company (CCECC), handling the project.

The Project Manager of the company, Etim Abak, who answered questions from members of the committee when they undertook an oversight assignment to the project site, said the contract was signed by the then FCT minister without design and MOU, saying it was carried out based on what he simply identified as a conceptual design.

“The contract was awarded based on a conceptual design and estimates were not properly done. There was no formal design submitted and rail bridges and crossover bridges were not captured in the contract, “he told the committee.

According to him, the contract sum was $841.645,898 and project completion period was 48 months while the scope of work was 60.67km standard gauge, with double railway tracks and associated permanent way within FCT.

Melaye , who alleged the whole project may be shrouded in fraud, wondered why the project, whose length initially stood at 60.67 kilometres was later reduced to 45.245 without cut in the cost of the project initially paid for.

Credit: Guardian

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