Proposed Delta Central Secretariat: Assembly Ratifies N13.6bn For Project Execution

FOLLOWING the state government’s commitment to finding a permanent solution to the challenges of dearth of office accommodation, the Delta State House of Assembly yesterday authorised the financing of a proposed N13.6 billion Central Secretariat Complex, Asaba

According to a letter from the state Governor, Senator Ifeanyi Okowa, read on the floor of the House by the Speaker, Rt. Hon. Sheriff Oborevwori, the State Executive Council has considered and approved the project to be handled by North China Construction Group Limited at a negotiated amount of N13, 645,131,243.47 on a contractor-financed basis, along with the attendant financing cost.
 
The authorisation sought by the letter includes the considered and approved decision by the EXCO directing that the project be financed by way of borrowings amounting to N8 billion and the naira equivalent 18.5 million of US dollars, in line with the terms and conditions.
 
As shown in the terms and conditions, Delta State Government is expected to guarantee the loan of N8 billion to be obtained by North China Construction Group Limited (NCCG) from the United Bank of Africa (UBA) and to issue Irrevocable Standing Payment Orders (ISPOs).
 
The governor said that the action was predicated on the fact that, since the creation of Delta State in 1991, most government Ministries, Departments and Agencies (MDAs), have been operating from government buildings scattered across the state.
 
He said that most of the buildings were designed and constructed for residential purposes and not for office use, hence are improper and unconducive for office use and that the situation denies the state the advantage of proximity of government offices to one another.
 
Governor Okowa said that procedurally, the occurrence and ratification of the state House of Assembly is expected to be additionally sought and obtained to facilitate the conclusion of the transaction with the bank.
 
The Majority Leader of the House, Hon. Tim Owhefere, in his debate, argued that the move was important in view of the fact that government spends over N7 billion yearly on rent.
He said that, on completion of the project, rent would be converted to more profitable ventures.
According to him, the essence of the secretariat cannot be over-emphasized, adding that the contractors , North China Construction Group involved in the project, is a company with integrity which had handled projects as such.
 
“Let’s look at how much the state stands to gain. I think it is a worthwhile decision, compared to the loss recorded yearly, most especially as it is financed by the contractors,” he added. Other members who spoke, including Hon. Samuel Mariere, Hon. Emeka Elekeokwuri and Hon. Rueben Izeze described the project as laudable, adding that the move will also give way for the Chinese to help develop the state like they are doing in Lagos and Akwa-Ibom States.