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Chinese firm, ZTE fail to complete $470m CCTV contract

By BusinessNews Staff on October 10, 2015

The House of Representatives on Thursday indicated its readiness to probe the failure of Chinese firm, ZTE Corporation to completely implement the terms of a $470 million contract for the installation of Closed Circuit Television (CCTV) in Abuja and Lagos, which was awarded in 2010.

It noted that the firm was contracted to install 2,000 digital solar-powered cameras (1,000 each for Abuja and Lagos), 37 switch rooms, MW backbone, 37 coalition emergency response systems, 38 video conference sub-systems, 37 e-police systems, six emergency communication vehicles and 1.5 millions lines for subscription.

Expressing worry at the dormant state of the CCTV cameras installed by the firm in Abuja, the lawmakers noted that the absence of critical equipment hampers intelligence gathering which would be useful in tackling some of the security challenges currently being experienced in the country.

The House resolved to set up an ad hoc committee to investigate the circumstances surrounding the award and non-completion of the contract, and urged governments at all levels to install or reactivate CCTV cameras in all state capitals, and major cities.

The resolution followed a motion jointly sponsored by Hon. Adekoya Abdul-Majid (Ogun PDP) and Hon. James Faleke (Lagos APC) who noted that the aim of installing the camera was to facilitate real time communication between security agencies to enhance their capacity to ensure security.

“By the contractual terms, Nigeria was required to make a down payment of 15 per cent, amounting to about $70.5 million, while the Chinese EXIM bank was to provide the remaining 85 per cent amounting to $399.5 million, which Nigeria was required to repay on a three per cent interest rate within ten years at prevailing exhange rate,” the motion stated.

Contributing to the motion, the House Majority Leader, Hon. Femi Gbajabiamila, lamented that the failure of the CCTV cameras to work, is indicative of how things have been done in Nigeria.

“The House has to pay more attention to matters that affect Nigeria, particularly on security. This motion is about due process, there is need to find out how this contract was signed, and why the cameras are not working,” he said.

Gbajabiamila added that deploying such technology would contribute to the capacity of security agencies to avert bomb attacks on Nigerians.

In another development, the House of Representatives urged the government to explore bitumen deposits in Nigeria put at an estimated 42.74 billion metric tonnes, covering over 120 kilometers stretch in Lagos, Ogun, Ondo, Edo, Ebonyi, Abia and Kogi States.

The lawmakers further urged the Ministry of Solid Minerals to re-evaluate all actions taken by previous governments aimed at exploiting the abundant bitumen deposits in the country for revenue generation and employment creation.

Sponsor of the motion, Hon. Mayowa Akinfolarin (Ondo PDP) expressed worry that the continued dependence on crude oil has exposed the national economy to danger due to dwindling oil sales

“Bitumen deposits in Nigeria are twice the amount of the existing reserves of crude petroleum deposits and when fully harnessed, would meet local requirements for road construction and also become a source of foreign revenue for the country,” he said.

In 2002, two firms BEECON Nigeria Limited and NISSANDS of Canada won the bid for two blocks of bitumen deposits stretched in Ondo, Ogun, Lagos and Edo States. They have however failed to mobilise to site on the grounds of a lack of technical expertise and financing amounting to between $250 and $300 million each to commence operations.

The House also called on the Federal Roads Maintenance Agency (FERMA) to temporarily rehabilitate the Owo-Iyere-Ipele-Ago Alao-Sosan-Isua Road, in Ondo State, to facilitate easy movement, especially for heavy duty vehicles.

It also called for the inclusion of a proposal to reconstruct the highway in the 2016 budget.

Sequel to a motion by Hon. Gabriel Kolawole (Ondo APC), the House noted that the road which links the western part of Nigeria to the Federal Capital Territory, has been allowed to deteriorate in the past 20 years, leading to several accidents as commuters attempt to navigate through.

[ThisDay]

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