Ameachi, Hadiza Bala Usman at the African Ports and Hinterland Conference
BreakingFeaturedHighlightInvestigationNews From MDA'STrending Story

Amaechi’s directive to NPA on equipment purchase lacks budgetary provisions-Investigation

1.3k

 

Fresh details have emerged on the disagreement between the Minister of Transportation, Mr Rotimi Amaechi, and the suspended Managing Director of the Nigerian Ports Authority, NPA, Hadiza Bala Usman, on the procurement of equipment to execute the job of managing channels in the Nigerian ports.

The Ministry of Transportation had, in a statement by its Permanent Secretary, Dr Magdalene Ajani, claimed that the NPA under the suspended MD, sidestepped a clear directive to procure equipment and not to proceed with award of contract for the management of the channels (capital/maintenance and wreck removals).

This, as learnt, was after his request for a one-year extension of the contract of the JV contractors handling the project fell through due to the objection by the Bureau of Public Procurement (BPP), which insisted that instead of extension of contract period by a year, fresh public tenders should be conducted.

According to available information, it consequent upon the inability of the NPA to extend the contract period that the Ministry directed the NPA to go ahead and procure dredging equipment and to stop awarding channel management contracts to outsiders.

Per Second News gathered that the development was contrary to the claim being bandied by the Ministry that the NPA did not obey its directive, whereas it actually did the needful by seeking a no objection of the Bureau of Public Procurement (BPP) in line with the provisions of the Public Procurement Act (PPA) to extend the contract as requested by the minister.

It was gathered that despite the claims and counter claims, the contract in question has not been awarded as it is still undergoing procurement process, including the obligatory approvals by the Ministerial Tenders’ Board and the Federal executive Council, (FEC).

A source close to the development in the Ministry of Transportation and the NPA said that the Minister had requested that NPA should extend the existing JV partners for one year at the expiration of their 15-year contract in August 2020. 

The source said that “In line with the PPA, the NPA sought the no objection of BPP to extend the contact for one year in line with the Minister’s directive. The BPP declined the request and directed the NPA to proceed and conduct public tenders for the JV partner. 

“Following the decline by BPP of the extension directed by the Minister, he (the Minister) then sent a letter to the authority that it should procure the dredgers and not proceed with the tender and to provide information about costs in wreck removal.”

Per Second News gathered that the immediate problem that the NPA had to contend with was the fact that there no provision for procurement of the equipment in the 2020 and 2021 budgets.

Besides, it was reasoned that even if the money was to be vired in the budgets, the procurement of the dredgers was not going to happen in the twinkling of an eye as it would take a long time to accomplish.

The source also raised the issue of maintenance of the equipment for which the NPA lacks the manpower resources to undertake. “It would take time and resources to train the manpower to enable them handle the maintenance of the equipment and wreck removals, which are the forte of the JV partners.”

Per Second News also gathered that the cost of procuring the equipment is very huge, explaining the reason channels managements are globally done through third party contractors (international dredging companies) who own the equipment which they deploy in their various sites globally.

To be on top of its game, the NPA is expected, in addition to having trained manpower resources to maintain the equipment, acquire equipment which include but not limited to Jumbo Trailing Suction Hopper Dredgerwhich costs about €200,000,000.00 (N 92.8bn); Medium Trailing Suction Hopper Dredger, which costs about €100,000,000.00 (N 46.4bn); Cutter Suction Dredger, which costs about €150,000,000.00 (N 69.6bn); Grab Dredger, which costs about €150,000,000.00 (N 69.6bn); Heavy Lift Wreck Salvage Vessel, which costs about €60,000,000.00 (N 27.84bn); Multicart (for Bouys Maintenance), which costs about €10,000,000.00 (N 4.64bn); and, Tug Boat, which costs about €15,000,000.00 (N6.96bn) all at the approximate rate of One Euro to N464.

 

READ ALSO: Considering the economic implications of the Amaechi-Hadiza feud

Leave a comment

Related Articles

Just in: EFCC: Appeal Court overturns Kogi high court order, rules against Yahaya Bello

In a contempt case filed by Kogi State Governor Yahaya Bello, the...

Shell signs agreement to build gas pipelines in Oyo State

The Oyo State Government has partnered with Shell Nigeria Gas (SNG) to...

Leisure and Travel: Tapping into the Adventures that Beckons Prt 2

You have to agree that giving your body what it needs, includes...

Pres. Tinubu to inaugurate NNPC Ltd’s three critical gas infrastructure projects

In line with his commitment to significantly leverage gas to grow the...

World Press Freedom Day: Press freedom will not be compromised, Tinubu govt assures 4th estate of the realm 

Mr. Mohammed Idris, the Minister of Information and National Orientation, has asserted...

Lagos-Calabar Costal Highway: Landmark Beach Refunds Customers After Demolition

Landmark Resort Beach’s management has initiated the refund process for customers affected...

Latest Kaduna terrorists’ attack: Vigilantes killed, two village heads, others abducted

Suspected bandits have reportedly attacked Maraban Agyaro, where they abducted the village...

Policeman who fatally shot man during petrol queue melee in Lagos identified, say police

The trigger-happy police officer who shot a young man, Toheeb Eniafe, at...

Gas explosion: Gas Minister visits Ogun as governor tightens truck regulations to improve road safety

The Ogun State Government is to introduce a policy that would enforce...

Security: Real-time aerial surveillance cameras, data-gathering sensors for FCT – Minister

The Minister of the Federal Capital Territory, Mr. Nyesom Wike, is set...

South-South governors back Lagos-Calabar coastal highway

The south-south governors of Bayelsa, Rivers, Cross River, Edo, and Delta states...

Suspected killer of 14-year-old Nigerian Daniel Anjorin in East London sword attack hauled up in court

Following the killing of 14-year-old Nigerian Daniel Anjorin in an east London...

London sword attack on Anjorin: 36-year-old suspect in police net

The 36-year-old suspect in the fatal London sword attack is currently being...

14-year-old Nigerian-born, Daniel Anjorin named as the victim of a sword attack in London

The 14-year-old boy killed by a sword-wielding man in Hainault, London has...

Lagos Landmark Beach demolition: FG compensates tenants, business owners

In response to mounting tension over the demolition of buildings and businesses...

Lagos gas explosion: One tragedy too many, pregnant woman, eight others seriously injured

A gas explosion in the Ajegunle-Apapa area of Lagos has left at...

FG signs Executive executive order to unlock $10bln investment in oil and gas

President Bola Tinubu has signed an Executive Order to unlock up to...

Port Harcourt-Aba train service inaugurated amid citizens’ excitement

The commercial train service for the Port Harcourt-Aba line began operation on...

Nigeria to produce 4,000 metric tonnes of lithium daily – VP Shettima

In the not-too-distant future, President Bola Tinubu will inaugurate Nigeria`s largest lithium...

Breaking: NFF appoints Finidi George as Head Coach of Super Eagles

The Board of the Nigeria Football Federation has approved the recommendation of...