70% of over N15bn Dan Agundi interchange construction cost to come from LGs funds-Kano govt

By Abdullahi Muhammad

It said the cost of the construction of over N15bn is to be financed by the State and Local Government joint arrangement at the ratio of 30% and 70% respectively.

The letter sighted by SOLACEBASE on Wednesday states that the sum of  N15, 974,357,203.99 has been approved for the contract and awarded to Messrs CGC Nigeria Limited during the State Executive Council meeting

Kano State Local Government Councils are to provide seventy percent of funds for the construction of the proposed Dan Agundi Interchange initiated by the administration of Governor Abba Kabir Yusuf.

SOLACEBASE had reported in November that Kano State Executive Council at its 8th meeting ratified the release of N15,974,357,203 to the state Ministry of Works and Housing for the construction of Dan Agundi Interchange Underpass and Flyover.

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In a letter dated December 18, 2023, titled RE: Request for the release of fund for the construction of Dan Agundi Interchange (Underpass and Flyover) the State Accountant General requested the Commissioner for Local Governments to facilitate the release of the funds following a directive from the State Executive Council.

It said the cost of the construction of over N15bn is to be financed by the State and Local Government joint arrangement at the ratio of 30% and 70% respectively.

The letter sighted by SOLACEBASE on Thursday states that the sum of  N15, 974,357,203.99 has been approved for the contract and awarded to Messrs CGC Nigeria Limited during the State Executive Council meeting on 29th November 2023.

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This approval, the letter added is accompanied by a directive to the State Ministry of Finance to release advance payment to the tune of Six point three Billion Naira (N6,389,742,881.59) under a genuine Advance Payment Guarantee (APG) from a reputable Bank to enable quick mobilization of the contractor.

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By this directive, the Ministry for Local Governments is to release on behalf of the forty-four Local Councils, forty percent of the APG representing Four point four Billion Naira (N4,472,820,017.13), while the state Government pays the same percentage to the tune of one point nine Billion Naira (N1,916,922,844,40).