Chief Paulinus Akpeki, better Ugo, is Governor Emmanuel Eweta Uduaghan’s Commissioner for Housing. Since he was appointed shortly after the governor was re-elected in 2011, Akpeki has buried himself into the formulation and implementation of the Delta State Government’s policies on housing. In this interview with Adewole Martins, he revealed why his boss deployed strategies to avoid the ugly situation of abandoned projects, including that of the multi-billion naira Delta Towers in Abuja. Excerpts:
Delta Towers, Abuja and others in Lagos State were abandoned by former Governor James Onanefe Ibori’s administration. The multi-billion naira project has not only generated heated arguments but the whereabouts of the monies appropriated for it have topped questions about the state. What is the latest story about the project?
The story about it today is of joy and smile. The structure is right in the centre of Abuja. It is meant to provide a very wonderful alternative to Sheraton Abuja Hotels and Towers as well as Transcorp Hilton Hotels, both in Maitama District close by. Civil servants, the public as well as other visitors, with good taste but with less money to spend will find it irresistible. The project was approved for construction by the Delta State Executive Council in September 2004 and was subsequently awarded to J.P. Sigma Nigeria Limited at the initial contract sum of N1,589,789,202.00. This cost was however to be revised in 2010 to N2,272,558,146.01 and later to N2,687,866,909.16 in 2011 due to fluctuation claims, modification and the execution of additional jobs. The firm of Inter-Designs Partnership (Architects and Prim Consultants) was engaged as the consultant at the cost of N109,025,112.02. Although, the contractor commenced work in September 2005, it had to stop for about two years due to constraints of funding, leading to unpaid certificates. After the indebtedness to the contractor was settled shortly after I resumed office in the Ministry, the contractor was mobilized to site. I can tell you authoritatively that the project is not just a status symbol for Delta State but a great asset that should have been generating considerable revenue to the state, had it been completed on schedule some six years ago. But the joy of the whole thing is that I am glad to inform you that the Delta Towers, Abuja is now completed and ready for commissioning any time from now. Secondly, the project was designed to provide lettable shops, offices, banking hall, restaurant and rooms. It also comprises the construction of a six-storey building to accommodate guests rooms/suites, swimming pool and a penthouse. Also included in the project is the construction of a perimeter fence, gate house, underground water tank and a car park as well as the sinking of a borehole and installation of other mechanical services such as lifts and escalators. The New Governor’s Lodge being built in Lagos is to provide a befitting new lodge for the governor and his guests in Lagos. To this end, the Ministry of Housing awarded a contract on September 3, 2008 to Hanwell Engineering Limited at the cost of N318,157,348.14. The project involved the demolition of an existing property at No. 33/34, Waziri Ibrahim Crescent, Victoria Island, Lagos, including the construction of a residential complex for the governor, made up of a five-bedroom duplex storey building, a four-bedroom guest house, boys quarters and garage, gate-house and generator house. Other works include external works, landscaping, water treatment plant and telecommunication installation. The target was to complete the project within 18 months as an official transit accommodation for the governor and his guests. However, the project failed to commence immediately due to unavailability of the title deed of the existing property. It took the concerted efforts of the officials of my ministry and those of the Lagos State Government to get the title deed and thereafter work commenced effectively in November, 2011 (two years after the award). Regrettably, soon after the work started, the consultants, Pieach Limited, abandoned supervision of the project. Due to the long period of non-commencement of work on the project and as a result of change in scope, the contract sum was reviewed to N418,576,847.30. The sum of N287,000,004.09 has so far been paid to the contractor and adequate provision made in the current year’s budget to enable the contractor get paid for jobs executed as and when due. In the light of this development, the Ministry took over the consultancy with a team of project officers, led by me. I am happy to state that the project has been completed and awaiting commissioning. Besides, the Delta Towers and other laudable projects completed across Delta State by His Excellency, Dr. Emmanuel Uduaghan, this project will also serve as a legacy of this administration.
Apart from the Delta Towers, Abuja, are there other projects abandoned by the Ibori administration, but resuscitated by Governor Emmanuel Uduaghan?
Yes, of course, a number of projects which, although were not totally abandoned but were largely inactive, have been resuscitated and are now ongoing. They include the religious hostel, Government House, Asaba; the office complex for the Head of Service, Asaba; the Construction of High Court Complex, Warri; the construction of office complex for Ministries of Finance and Economic Planning, Asaba; and the construction and beautification of Erejuwa Play Ground, Warri. The High Court Complex, for instance, was initially approved for construction in 2005 at the sum of N1,522,557,894.73, inclusive of consultancy fees, but was reviewed in 2006 to N3,067,035,936.78, while N2,873,700,513.72 and N193,335,423.06 was for consultancy fees. Approval was also given for payment of mobilization of N718,425,128.43, which is 25 per cent of the total contact sum to facilitate early take off and timely completion of the project. It was designed with a view to providing a befitting office accommodation for judges and staff of the judiciary in a conducive working environment, as well as to ensure that the various courts located in rented or community buildings in the area are moved into one complex. The phase 1 of this project consists of the demolition of existing three temporary court buildings in order to give room for construction of the main complex. The main court complex, which is phase II, is a seven-storey building. It consists of six court halls/judges’ chambers, offices for staff, conference hall, a restaurant as well as other infrastructural facilities. The project was managed by a Special Project Director until 2008 when it was handed over to the judiciary and in 2012, the judiciary handed over the project to the Ministry of Housing to supervise and manage its completion. The construction of three temporary court buildings, which formed part of the contract, has been completed and the building are currently in use by the High Court of Justice. Excavation work for the construction of the Main Court Complex (phase II) commenced in 2008 but was stalled due to funding constraints. The contractor, J.P. Sigma, has been paid N400,000,000 as part of mobilization fee. In order to ensure good execution and early completion of the project, which was awarded in 2006, there has arisen a need to review the project cost in line with current market realities. The review process is currently in progress. It is worthy to note here that His Excellency, the Governor, Dr. Emmanuel Uduaghan, CON, recently settled the certificates owned the contractor upon the presentation of these claims to him by the Ministry of Housing. So you can see what it is all about. The project, which was abandoned since August 2009, upon the settlement has now been resuscitated.
Why did His Excellency, Governor Uduaghan, up the ante under his Public-Private-Partnership on Housing Initiative policy?
It is perhaps pertinent to point out here that discussions are currently going on between the state government and a number of reputable estate developers, both within and outside the country for housing projects under the Public-Private-Partnership initiative to provide affordable housing to Deltans on commercial basis. Viable developers will be chosen after due process of assessment of their financial and technical abilities and the viability of the proposed joint ventures. Several of them have applied but we soon discovered that they are mere noising gongs. The governor is only after reputable developers. For example, the governor, through the Ministry, has made significant progress with two viable developers, which have submitted proposals for partnership with the Delta State Government. A renowned developer, Rockland Development Limited, which intends to construct 2, 3 and 4 bedroom detached bungalows in Asaba, has been given approval in principle by His Excellency, the Governor. The Memorandum of Understanding project details (houses, infrastructure) are being worked out for final approval. Also, the other developer, Tari-G-MB Development Consortium Limited, which will develop 500 housing units of 1, 2, 3 bedrooms together with infrastructure in partnership with the Government, has been assessed to be viable and will soon be recommended for the joint venture. The civil servants would be the target beneficiaries. Besides, the Ministry recently proposed to build 150 low cost housing units made up of 50 units each of 1,2, and 3 bedroom apartments in Asaba for occupation by the civil servants on owner-occupier basis when completed. The sum of N800 million has been approved for the project, which will be awarded any moment from now. The potential buyers in the civil service are expected to avail themselves the opportunity of cheap mortgages offered by the Federal Mortgage Bank of Nigeria to access funds for the payment for the houses. The house will be sold at very affordable prices. Infrastructure such as water and electricity supply, earth roads, with drains, will also be built alongside the construction of the buildings for quick habitation of the estates. There is a plan to replicate this project in other areas of the state. The money to be realized from sales will be revolved for building of more affordable houses on a continuous basis. With this housing model, the Ministry of Housing is set to alleviate the accommodation problems of civil servants and it is expected to be the beginning of a new dawn in government’s direct intervention in housing delivery aimed at complementing the efforts of the private sector. In addition to the direct funding of low-cost housing scheme for public servants, the government of the state is also taking advantage of a N1.5 billion Term Facility offered to the Delta State Government by the Federal Mortgage Bank of Nigeria for the construction of affordable houses for civil/public servants in the state. To this end, two developers, Tome Nigeria Limited and G. O. Useh and Sons Nigeria Limited, were appointed by the state government as private developers to access N750 million each to develop 176 housing units at Ugbolu and Oku-Okokor sites, respectively. But due to the stringent conditions given by FMBN, only one of the two developers – Tome Nigeria Limited, has been able to access the facility. Tome Nigeria Limited was able to commence the construction of phase I of the Ugbolu Estate, consisting of 76 housing units after meeting some conditions by FMBN, using its private security to access part of the fund (N304,504,149.60). As at today, 70 houses have been built to different levels of completion. Because G. O. Useh could not access the fund, the MoU between the company and the state government is therefore being reviewed to enable another capable developer be engaged to execute the project. Very soon, I assure you, these projects will form part of the major milestones of this administration, particularly, in the area of housing development.
Some have said that your Ministry is more or less a consultancy boardroom where the ‘point and kill’ is executed for the state. What is your take on this?
It is part of the assigned functions of the Ministry to handle the design, preparation of Bills of Quantities, Supervision and Certification of building projects, belonging to other Ministries, Departments and Agencies of government. In the period under review, the Ministry received and treated over 1,000 requests for drawings and Bills of Quantities from different Ministries, Agencies and Departments in the state. They also supervised over 100 building projects to different stages of completion. Key among these projects are Board of Internal Revenue Headquarters Building Complex, Warri, which was reviewed to N1,652,627,489.10, from its initial contract sum of N1,026,376,205.27 in 2010, to Palmyra Construction Nigeria Limited; the Upgrading of 12 selected schools in Delta State at the cost of N8,798,519,115.80; the Senate Building at the Delta State University, Abraka, awarded at the cost of N947,090,572.63 to Apex Crane in 2010; Judiciary Projects, of which N600,000,000 was allocated to over 50 projects across the state; various health projects and what have you. A total of N211,400,105.26 was expended on the construction of male hostel at DELSU between 2010 and this year; the Mini-Sports Arena in Ibusa gulped N110,000,000.00. The project has since been completed in November 2012 and others in that category.
What is this story about paucity of funds, inadequate professional staff and other challenges all about in your ministry, when thousands of unemployed graduates are on the streets of the oil rich state and here you are, crying for inadequate staff? What is preventing the state from keying into all these opportunities?
The Ministry, as with all other government Ministries, Department and Agencies, suffers from the unavoidable challenge of paucity of funds for its numerous assignments. However, the level of resources available to government at any given time determines what each government department gets for it services. It is hoped that as government’s present reforms in the area of internally generated revenue continues to bear fruits, there will be remarkable improvement in the tempo of projects execution resulting from increased funding. The present number of professional staff in the ministry, I must confess, is far short of required number to conveniently cope with its volume of work. The Ministry’s professionals are required to handle all building projects in terms of design, preparation of Bills of Quantities, supervision and certification of all building projects in the state. The resultant effect is that the Ministry relies on the use of consultants to augment available in-house expertise with all the attendant implications on project costs and administration. The truth is that we need more hands to beat down the cost of consultancy. I want to place it on record that His Excellency, the Governor, has been wholly instrumental to the dramatic turn in the fortunes of the state, going by the modest achievements within the short space of my assumption of office.