‘N14bn debt stalls East-West road for 11 years’

The East-West road project in the Niger Delta region has not been completed for over 11 years due to N14 billion debt owed contractors, a House of Representatives panel heard yesterday.

The Permanent Secretary in the Ministry of Niger Delta Affairs, Williams Alo, who appeared before the Public Accounts Committee (PAC), said the non-payment of the outstanding amount was the major challenge hindering completion of the project.

The committee, chaired by Rep Kingsley Chinda (PDP, Rivers) had last week demanded for all documents related to the East-West Road contract, awarded at the sum of N322 billion.

At the continuation of hearing on the contract yesterday, Alo told the committee that the ongoing economic recession made it impossible to pay contractors with only Setraco paid N3 billion out of N17 billion owed for section 2 of the road, leaving a balance of N14 billion.

A technical director of Setraco, Engr Ziad Mouannes said the company had worked up to 78 percent on the section 2 of the road but that the work had to stop due to non-payment.

Chinda, in his submission, said the ministry “deliberately refused to prioritize” the work as a result of which militancy was on the rise in the region.

The ministry was given February 8 to reappear for continuation of the engagement.