The N85 billion contract for the supply of infrastructure for the Wasa Affordable Housing project in Wasa District, Abuja, has drawn criticism from Nyesom Wike, Minister of the Federal Capital Territory (FCT).
When he brought Dr. Mariya Mahmoud, the Minister of State for the FCT, and other government representatives to the housing estate’s road construction site on Monday, Wike conveyed his unhappiness.
The contract for the provision of the infrastructure was originally given in 2014 at a price of N26 billion, but it was later revised to N85 billion in 2018. Mr. Olusegun Olusan, acting coordinator for the Satellite Town Development Department, revealed this earlier.
Olusade informed the minister that the contractor had already received payment in the amount of N21 billion, leaving a balance of N64 billion due, with a completion rate of 21.4%.
The coordinator for the housing program noted that while private developers were responsible for building the homes and selling them to the general public at reasonable prices, the government’s responsibility was to provide the land and infrastructure.
He continued by saying that at the project’s inception, a two-bedroom apartment was going to be offered to the general public for N7 million.
The minister, who stressed that the government shouldn’t spend N85 billion to provide land and infrastructure for free, was unimpressed with the FCT’s arrangement.
“We are not impressed with the arrangement made by the FCT. Government cannot just cough out N85 billion for infrastructure and then give land out to private developers who will build and sell.
“This kind of arrangement is not commendable at all. We think that the government must also participate, having provided the land and infrastructure.
“If we are partnering with private individuals or developers, the common sense is that you provide the land, provide infrastructure, and they come and develop. Then government, for example, can take 10 per cent then the developers take 90 per cent, depending on the value,” he said.
Wike said that under such arrangements, the government would be able to determine the price at which the houses would be sold to the masses, saying that the masses cannot afford N7 million for a house.
He said that the project would be revisited for proper planning in a way that the government would benefit from the project and ensure that the masses for whom the houses were being built could afford them.
On the delay of the project, which has been in the making for nine years, the minister said that FCT would not be awarding contracts for the sake of awarding.
“We will award contracts that we know we will finish before embarking on another contract. Every contract is abandoned because there is no money. So, we are going to look at everything,” NAN quoted him as saying.