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BPP saves N8.9bn on contracts in three months

By on January 2, 2015

The Bureau of Public Procurement has saved about N8.9 billion for the federal government between April and June 2014 through cost reduction of contracts.

This is contained in the bureau’s 2014 Second Quarter Report made available to the News Agency of Nigeria (NAN) by its Head of Public Relations, Mr. Thomas Odemwingie, on Wednesday in Abuja.

According to the report, the savings is based on the difference between the amount requested for contracts by various ministries departments and agencies (MDAs) and what the bureau approved after vetting the contracts.

A breakdown shows that about N136.6 million was saved from the contract submitted by the Ministry of Police Affairs to procure six units of Innoson Motors buses.

The ministry had requested for N250 million which was revised down to N113.4 million by the bureau.

Also, the Ministry of Transport’s request for $61 million for the construction of Berth 21 at Terminal E, Lagos Port complex, Apapa, was revised down to $59.6 million.

“This shows that $1.4 million (N228.4 million) was saved on this project alone,’’ the report said.

It further indicated that the bureau had cut down to N289.3 million, a request by the Ministry of Works for N307.1 million for “additional advisory services” on the concessioning of the second Niger Bridge.

This had led to a saving of N17.7 million on the contract for the federal government, the report indicated.

It also indicated substantial saving from the request submitted by the Ministry of Niger Delta Affairs in respect of contracts for three separate projects for N9.8 billion, N116.5 million and 116 million.

It stated that the bureau saved N3.1 billion after vetting the contracts which were brought down to N6.7 billion, N106 million and N106 million respectively.

Similarly, about $10.4 million was saved from the contract submitted by the Nigeria National Petroleum Corporation (NNPC) for the construction of gas conditioning facility at Oredo Field.

The NNPC had submitted to the bureau a request for $126.6 million to execute the contract but which was revised down to $116.2 million dollars.

 

[ThisDay]