Text of the Press Statement Delivered by the Chairman of SURE-P, Martin Luther Agwai (General Rtd) ) on SURE-P East-West Roads Niger-Delta Projects

 Protocol Greetings A .      INTRODUCTION: The East-West Road is a Federal Arterial Route which runs from Warri through Kaiama – Port Harcourt – Eket and to Oron. The road is also a major trunk outlet for the transportation of petroleum products from Port Harcourt and Warri Refineries to other parts of the country. Oil exploration and industrial activities in the coastal Niger Delta Region depends heavily on the East-West Road for movement of equipment, goods and personnel. In view of the importance which government attaches to the road as well as the volume of traffic the route generates, the Federal Government has decided to upgrade the existing single carriageway of the East-West Road to a 2-lane dual carriageway and awarded the construction contracts into four different sections. The projects which commenced variously from 2006 are expected to be substantially completed by December 31, 2014 and finally handed over by the middle of 2015. Overall Progress to date:                              82% Completion Overall Progress at SURE-P Inception:        47% Completion B .        Justifications for the project at inception include: Access to Oil  and Gas facilities

1. Access to Seaports at Onne
2. To connect the various state capitals in the Niger Delta Region.
3. Federal Government response to agitations for equitable development in the South-South

C .        Project Summary  EAST WEST ROAD PROJECT SUMMARY

(i)     Section I: Warri –Kaiama (87km) Contract No. 5867 The connecting major towns are Effurun/Warri  to Ughelli to Patani and to Kaiama

1. Contractor: SETRACO Nig. Ltd
2. Work Progress: a) Work at SURE-P Inception was 52.21%
3.                       b) Work is now at 91% completion

iii.  SURE-P Expenditure to date: N20,629,436,226.06 (ii) Section II-I: Port Harcourt-Ahoada (47km) Contract No. ID/09/03 The Project  traverse Port –Harcourt (Eleme Junction-Ahoada)

1. Contractor: SETRACO Nig. Ltd
2. Work Progress: a) Work at SURE-P Inception was 23.17%
3.                       b) Work is now at 65.12% completion

iii.          SURE-P Expenditure to date N12,883,045,316.90 (iii) Section II-II: Ahoada-kaiama (54km) Contract No. ID/09/02

1. Contractor: SETRACO Nig. Ltd
2. Work Progress: a) Work at SURE-P Inception was 18.21%
3.                    b) Work is now at 55% completion

iii.  SURE-P Expenditure to date N20,919,473,287.03  (iv)     Section III: Port Harcourt- Eket (99km) Contract No. 5882  The connecting major towns are Port- Harcourt to Onne to Ogoni and to Eket

1. Contractor: Reynolds Construction Co.Ltd.
2. Work Progress: a) Work at SURE-P Inception was 73.44%
3.                     b) Work is now at 94% completion
4. SURE-P Expenditure to date N18,219,100,837.94
5. The Federal Executive Council (FEC) has recently awarded to Messrs RCC Nig. Ltd. for the upgrade of Port Harcourt-Eleme junction flyover to ONNE junction (15Km) for N43,869,381,730.23.

(v) Section IV-II: Eket-Oron (51km) Contract No. 5883 Section IV: It lies entirely in Akwa-Ibom State with the connecting major towns being Eket      and Oron.

1. Contractor: Gitto Costruzioni Generali Nig. Ltd
2. Work Progress: a) Work at SURE-P Inception was 53.55%
3.                      b) Work is now at 81.9% completion

iii.          SURE-P Expenditure to date N7,845,941,43.04

1.    Challenges (East West Road)
2.           Unfavourable Weather conditions, for example, Sporadic Rainfall
3.          High Water Table

Poor Soil Condition and soil consolidation cannot be hurried

1.         Inadequate funding prior SURE-P intervention
2.         Difficult community leaders and others.
3.          Delays in relocation of markets holding along the road corridor
4.         Cost Escalation
5.        ECONOMIC BENEFIT OF PROJECTS

A         Employment Generated——–3500 (Both Senior/Junior Category including skilled and     unskilled labour) B.        Numerous Indirect Employment Generated

1.           Participation of local contractors and host communities in activities such as sand    dredging, grassing and stone pitching. This has generated wealth for the locals.
2.          Substantial reduction in travel time in the areas traversed by the road.
3.         Reduction in Vehicle Operating Costs as need for repairs and parts replacement is highly minimized.
4.         Increased socio-economic activities as communication is improved in the area.
5.          Mobility and Communication generally enhanced.
6.         Reduction in road accidents caused by head-on collision with traffic in opposite direction.

1.        SPECIAL INTERVENTION PROJECTS 

   RECONSTRUCTION OF OWERRI TO ELELE ROAD (35.75KM)

1. Contractor: Arab Contractors (O.A.O Nig. Ltd)
2. Work Progress: a)  Percentage Completion before SURE-P Intervention was 54%
3.                    b) % Completion is now at 59%

iii.  SURE-P Payment to date N1,297,771,091.91 G.   DUALISATION OF THE PORT HARCOURT/ ABA EXPRESS WAY TO OBEHIA-                 AZUMINI-UKANAFUN (50Km) – (SECTION I & II)

1. Contractor: CCECC NIG LTD
2. Work Progress: a) Work at SURE-P Intervention  was 31%                     c) The Contractor has re-mobilized with SURE-P Funds.
3.                      b) Work is now at 33%
4. SURE-P Payment to date N1,372,145,090.50

1.   Recommendations For Moving Forward:

a. Increase fund allocation from Sure-P fund. b. MNDA funds allocated should be released henceforth. c. Collaboration with the Niger-Delta Development Commission (NDDC). d. Special fund from the Federal Government. e. SURE-P to be targeted as major infrastructure development.