Delta Assembly approves N1.6bn for Asaba Central Hospital remodeling contract
Delta Assembly approves N1.6bn for Asaba Central Hospital remodeling contract
Approval
By Mercy Obojeghren
Asaba, April 9, 2019 (NAN) The Delta House of Assembly on Tuesday approved the request by the State Government to issue an Irrevocable Standing Payment Order (ISPO) of N1.6 billion to Fidelity Bank.
The approved amount is the balance of the total cost of the remodeling of the Central Hospital, Asaba which is put at N3.4 billion.
The Acting Governor, Mr. Kingsley Otuaro, sent the request through a letter read by the Speaker, Chief Sheriff Oborevwori, during the plenary in Asaba.
Otuaro explained that the state government originally awarded the contract for the remodeling of the hospital in the state capital to Deux Project Limited at the cost of N2.2 billion.
He said that in the course of the project execution, the initial contract sum was reviewed upward by N427 million due to price fluctuations and additional works.
The acting governor added that a contract for the construction of internal roads and parking lots within the hospital premises was also awarded to the same contractor at the cost of N242 million.
He noted that due to the damaged hospital perimeter wall occasioned by the 2017 flood in Asaba, it became necessary to reconstruct the fence with concrete.
Otuaro said this was executed at the cost of N46. 2 million, bringing the total contract sum to N3.4 billion.
According to him, the state government had already paid the contractor the sum of N1.9 billion, leaving a balance of N1.6 billion.
He said the State Executive Council on March 26, ratified the governor’s approval for the completion of the remodeling project, through contract financing to be provided by Fidelity Bank as a term loan facility of N1.6 billion.
He said that the project would be executed by Open House Property Management Company Limited, a sister company of Duex Project Limited.
Otuaro said that the purpose of the letter was to seek the authorisation of the house for the state government to issue an appropriate ISP) in favour of Fidelity Bank.
The acting governor said the authorisation of the full repayment of the facility amounting to N1.6 billion, with equal monthly installments of N143 million for a period of eight months.
Consequently, the Majority Leader, Mr Tim Owhefere, moved a motion for the house to receive and approve the request.
The motion was seconded by Mr. Peter Onwusanya, representing Oshimili South state constituency and the request was approved, through a voice vote by the Speaker, (NAN)
MOA/EMO
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Edited by Ejike Obeta