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Stakeholders Raise Concern over Unending Rising Cost of Building Elusive Second Runway at Abuja Airport
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Chinedu Eze
Aviation industry stakeholders are worried about the unending rising cost and the controversy surrounding the second runway project at the Nnamdi Azikiwe International Airport, Abuja.
They have therefore called on the federal government to either complete the project or drop the plan entirely.
The planned project has a long history, from being awarded to Julius Berger in 2009 at the cost of N64 billion to the House of Representatives throwing it out in April 2010, insisting the cost was outrageous.
The House revoked the project in 2010 and ordered the Federal Airports Authority of Nigeria (FAAN) and the Bureau for Public Procurement (BPP) to conduct fresh bidding, but 15 years after, the project is yet to be completed.
Today, the project which was awarded for the sum of N64 billion was later re-awarded for N90 billion, but later the China Civil Engineering Construction Corporation (CCECC) handling the project conducted a new variation, which catapulted the cost from N90 billion to N532 billion, indicating a 591.11 per cent increase.
Reacting to the delay and continuous rise in the cost of the project, the Secretary General of Aviation Round Table, Olu Fidel Ohunayo, told THISDAY that there was need for variation in the cost of the project, recognising the high inflationary rate in Nigeria and exchange rate but explained that the high cost was unacceptable and for him, adding that Nigeria may not need a second runway at the Abuja airport.
“I am of the opinion that there is a need for a variation. I am also of the opinion that the figure, the 528 billion now, should also be looked into. I think that is too high,” he said.
Ohunayo also said that the existing runway at the Abuja airport has not been optimised, which means that there is no need for a second runway and advocated that the Federal Airports Authority of Nigeria (FAAN) should acquire evacuation equipment that would be used to remove aircraft instead of closing the airport for other users, noting that it is that closure of the airport that made many think there is need for a second runway at the airport.
“Well, I am not a supporter of a second runway, but for me, the single runway has not been used to optimal capacity. What I supported is for us to have the equipment for quick evacuation from the runway when issues occur. I think that is more important. I want to see them have evacuation equipment at the Abuja airport than going for a second runway. But now that they have gone for a second runway, and if you look at that runway from N90 billion, when N90 billion was quoted, if you look at the value of Naira as at that time to what we have now, there has been an increase. And with that increase has come inflation, and with inflation, it has affected all other products and services that will be used on that runway,” he said.
Ohunayo however said: “While I agree that there is inflation and the rate of exchange of dollars has changed, I also believe that the N528 billion is excessive and should not be entertained.”
Reacting to the new variation cost, the Managing Director/Chief Executive Officer of Aero Contractors of Nigeria Limited, Captain Ado Sanusi, flayed the contractor of the project, saying that the 591:11 per cent increase of the cost is outrageous, but insisted that there was need to have a second runway at the airport, reiterating that the facility was overdue.
According to Sanusi, “This is not the first time we are building runways and we are not the first country to build a runway. Convert the money that the contractor is saying to dollars. If the contractor is overcharging Nigeria, blacklist them. It is very simple. We have built runways several times. We have over 22 airports in the country, why are we saying that a contractor is charging more? We know these things. We have engineers and quantity surveyors. Runway is not a space shuttle. It is a simple thing that we know. If the contractor has overcharged, let professionals look at it and say it is overcharged.”
Many industry stakeholders have been commending the Minister of Aviation and Aerospace Development, Festus Keyamo, for rejecting the variation cost and vacated the project until recently when he announced that the contractor had agreed to complete the project at lower cost, but the new cost has not been made public.
“But we are going to look at it all, involve all the stakeholders. Mr. President will be briefed. His report will go to his table and chairmen of the committees and all that. But me sitting down here, I have a duty to abide by my oath of office and to act with the fear of God,” Keyamo had earlier said.
Keyamo, had earlier threatened the termination of the contract due to an unreasonable cost variation at the ministry’s budget defense at the national assembly.
According to the minister, the original contract value was N90 billion, but the contractor later increased the cost to N532 billion, citing changes in the value of the Naira and the dollar.
The minister had described the variation as ‘unacceptable’ and ‘an avenue for fraud’ and explained that the president himself has expressed concerns about such variations, which he believes were an opportunity for corruption.
However, industry stakeholders are of the view that issues surrounding the project should be concluded, noting that although it is a legacy project but there are many other projects that should be attended to in the industry.
Many are of the view that if the project is not completed now, it may eventually not be completed again because the cost of the project may continue to increase with further delays.