FACT CHECK: Claims About Overpricing Of Aba- PH Road Project By Otti’s Govt False, Misleading

In an opinion piece by one Comrade Phils, he had claimed that the Port-Harcourt-Aba contract recently awarded by the government of Dr Alex Otti to the construction giant Julius Berger was overpriced.

Specifically, he claimed that when compared with the cost of Port- Harcourt Ring Road project awarded to the same company by the Rivers State Government last July, the contract awarded by Otti was inflated.

THE CLAIMS

According to Phils, the Governor of Rivers State, Sim Fubara awarded the Port Harcourt Ring Road to Julius Berger, which will have six flyovers, one river-crossing bridge, and 19 rotary intersections and roundabouts spanning over 51.15KM, for N195bn.

He further claimed that with all the bridges, many still lambasted the figures of this project.

In his analysis, he claimed that Abia State has a better terrain for road construction than Rivers state. He further pushed his argument by stating that the 6.7km road awarded by governor Otti to Julius Berger in Aba for N30bn should have cost the government less than the N30bn contract cost.

“I canvassed and voted for LP in all strata and even celebrated the flag off of that project by Otti after 20 years of abandonment by previous governments. While I still celebrate him for the courage to take on that project, we will not overlook symptoms of recklessness by any government in the name of we ‘supported you during elections.’

“Again, that project is overpriced unless proven otherwise with facts and details of the add-ons that would make it worth that huge sum, ” he had stated in his claims

THE FACTS

Let’s delve into the issue and provide the facts of the matter.

First, THE WHISTLER understands that the Port Harcourt Ring Road alluded to by Phils is a double lane dual carriageway of 50.15 km long.
This length, includes the total length of all the bridges, and it was awarded at a cost of N195.3bn.

This, according to THE WHISTLER analysis gives a contract cost of N3.89bn per km.

However, on the other hand, the Port-Harcourt- Aba road is 6.8 km long. Findings by THE WHISTLER showed it comprises of a triple lane dual carriageway of 5.7 km, and a double lane dual carriageway of 1.1km.

This gives an equivalent length of double lane dual carriageway of: (5.7 x 1.5) +1. = 9.6km.

It must be noted that the road was awarded at a cost of N30bn, which, according to THE WHISTLER analysis showed that cost per km based on a double lane dual carriageway of Port-Harcourt Ring Road is N3.11bn.

It is also important to note that in July, 2023 when the Port-Harcourt Ring Road was awarded, the Naira was exchanging at N750 per dollar. But in October 2023 when Port-Harcourt Road to Aba was awarded, the exchange rate was at over N1,000 to the dollar.

THE WHISTLER findings further revealed that in the contract awarded by the government of Otti to Julius Berger, the Port-Harcourt Road-Aba, is to be lined all through its length on both sides with huge concrete drains, including over 300 meters of drainage outfall that will safely discharge the storm water collected from the road.

When all these are put into consideration, the amount of savings made in the procurement of Port-Harcourt road to Aba by the Otti’s administration is huge.

In conclusion, this reduction in the contract cost would not have been possible without the goodwill which Otti, enjoys with Julius Berger. This was what paved the way for a substantial reduction in rates.

VERDICT:

The claims made by Phils about overpricing of Aba- PH Road Project by Otti Government is false and misleading. Based on the above analysis, it is very obvious that the the governor got the best deal from Julius Berger.

In conclusion, the reduction in the contract cost would not have been possible without the goodwill Otti, enjoys with Julius Berger, which paved way for a substantial reduction in rates.