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2014 DELTA STATE BUDGET: AGAIN, ALLOCATIONS TO PROJECTS WITH UNCLEAR OR VAGUE COMPLETION TIMELINES

December 20, 2013

There have been various controversies trailing the development strides of Delta State government, although progress has been made in the educational and transport sectors, there are concerns in other sectors, with respect to projects abandonment, delays in projects completion, and failed or unfulfilled promises. For the past three or more years, there has been a constant update of funds allocated to some major capital projects which have the potentials of transforming the fortunes of the State, if such projects are speedily completed. Despite the yearly ‘ritual’ of allocating funds to those projects, Deltans still remain in the dark as to the completion timetables, which negates the very basic tenet of project management. Before updating the funds spent to date on the major projects numbered 1 to 10 below, here are the highlights of some salient capital expenditure proposals in the 2014 Budget:
– Procurement of Modern Tractor Equipments – N1 billion
– Agricultural Youth Development Programme – N600 million
– Micro Credit Scheme – N800 million
– To boost electricity supply – N6 billion
– Asaba International Airport – N4.5 billion
– Upgrading of Osubi Airport to international standards – N4.5 billion
– Ogidigben Free Trade Zone – N1 billion
– Warri Industrial Business Park – N3 billion
– Delta Leisure and Destination Park – N2 billion
– Delta City Mall (to start operation before the end of 2014)
– City Mall Asaba (construction to commence soon)
– Ugbenu–Koko Road Dualisation – N3 billion
– Ughelli-Asaba Dual Carriageway – N10 billion
– Effurun-Osubi-Eku Road Dualisation – N5 billion
– Trans Warri-Ode-Itsekiri Roads and Bridges – N15 billion
– Dualisation of Old Lagos/Agbor Axial Road, Agbor – N1.8 billion
– Sustenance of Mass Transportation – N560 million
– Other transport targets in 2014 are:
***Complete the Asaba and Warri Mega Bus Terminals
***The Warri Bus Rapid Transit (BRT) project along Warri-Sapele Road.
***The setting up of the Delta State Traffic Management Authority (DESTMA)
– Primary and Secondary Schools Infrastructure Projects – N12 billion
– Ongoing Four (4) New Polytechnics Projects – N3 billion
– Completion of the Teaching Hospital, Oghara – N4 billion
– Completion of Central Hospital, Asaba – N2 billion
– Completion of Cardio-Renal Centre, Warri – N5 billion
– Social Development and Sports – N2.5 billion
– Flood Intervention Measures across the State – N1 billion
– Warri Drainage Projects – N1.1 billion
– Asaba Drainage Projects – N1.5 billion
– Beautification Initiatives and Projects across the State – N1 billion
– Junction Improvement Projects across the State – N2 billion
– Development of Housing Estates in the State – N3.5 billion
– DESOPADEC – N37 billion
– Attainment of the Millennium Development Goals – N1.5 billion

The 2014 Budget was presented by H.E Governor Emmanuel Uduaghan on Wednesday 18 December 2013 to the State House of Assembly and as usual will be approved in due course. What has become obvious is that, no matter the criticisms levelled on projects embarked upon in previous budget cycles for not having clear cut completion timelines, the section on the performance of the 2014 budget, made no mention of the level of completion achieved for the major projects to be reviewed below. The question to ask here is where on the planet do individuals or governments initiate projects without having clear timelines for completion? These lapses have led to the possible good intentions of the government being misconstrued in some quarters that such projects are being used as drain pipes to misappropriate our common wealth. The onus is therefore on the administration of Governor Uduaghan to be transparent and accountable, by publishing in whatever medium deemed appropriate, the relevant information on the completion schedules for the projects.

We are all in agreement that, the timely completion of the major infrastructural projects started by the government, will positively impact on the economic and social lives of Deltans. The government can revive the faith of the citizens in government’s dealings, if they can be very clear on completion timelines.

Below are the budgetary allocations to the major infrastructural projects started over the years and the further amounts allocated in the 2014 budget. It is instructive to note that the funds allocated in 2013 to these projects have been fully utilised, based on the fact that government’s analysis of the 2013 fiscal budget shows that the total revenue equals total expenditure, amounting to N472,006,772,170 (N472.007 billion).
The projects under review are:

1. ASABA – UGHELLI ROAD DUALISATION – Total Spent to Date: N24+ billion. Over N19 billion had been spent by the end of the 2011 fiscal year. Additional N5 billion was earmarked in the 2012 budget and a further unknown amount allocated in the 2013 budget. The allocation to all on-going road projects came under the heading Road Networks and amounted to N20.24 billion. Another N10 billion has been allocated to the project in the 2014 budget. By the end of 2014 the total amount spent would be in the region of N34 billion, plus the amount allocated in 2013 from the bulk allocation to road networks.

2. KOKO – UGBENU ROAD DUALISATION – Total Spent to Date: N5+ billion. Over N3 billion had been spent by the end of the 2011 fiscal year. Additional N2 billion was earmarked in the 2012 budget and a further unknown amount allocated in the 2013 budget. The allocation to all on-going road projects came under the heading Road Networks and amounted to N20.24 billion. Another N3 billion has been allocated to the project in the 2014 budget. By the end of 2014 the total amount spent would be in the region of N8 billion, plus the amount allocated in 2013 from the bulk allocation to road networks.

3. EFFURUN – OSUBI – EKU ROAD – Total Spent to Date: N5.94+ billion. Over N2 billion spent by the end of the 2011 fiscal year. Additional N3.94 billion was earmarked in the 2012 budget and a further unknown amount allocated in the 2013 budget. The allocation to all on-going road projects came under the heading Road Networks and amounted to N20.24 billion. Another N5 billion has been allocated to the project in the 2014 budget. By the end of 2014 the total amount spent would be in the region of N10.94 billion, plus the amount allocated in 2013 from the bulk allocation to road networks.

4. TRANS WARRI -ODE ITSEKIRI ROAD AND BRIDGE – Total Spent to Date: N11+ billion. Over N6 billion spent by the end of the 2011 fiscal year. Additional N5 billion was earmarked in the 2012 budget and a further unknown amount allocated in the 2013 budget. The allocation to all on-going road projects came under the heading Road Networks and amounted to N20.24 billion. Another N15 billion has been allocated to the project in the 2014 budget. By the end of 2014 the total amount spent would be in the region of N26 billion, plus the amount allocated in 2013 from the bulk allocation to road networks.

5. INDEPENDENT POWER PROJECT, OGHAREFE – Total spent to date: N32 billion. A project started in 2009, with over N24 billion spent by the end of the 2011 fiscal year. Additional N4 billion was earmarked in the 2012 Budget. In the 2013 budget, the government has allocated a further N4billion to the project. Although there was no specific allocation to this project, the government has allocated N6 billion in the 2014 budget to boost electricity supply in the State. By the end of 2014 the total amount spent would be in the region of N38 billion in the power sector.

6. WARRI INDUSTRIAL PARK – Total Spent to Date: N6 billion. Although a PPP, over N1 billion of State funds were spent on master planning, EIA, consultancy etc. by the end of the 2011 fiscal year. Additional N3 billion earmarked was in the 2012 Budget and a further N2 billion was allocated in the 2013 budget. Again the government has allocated a further N3 billion to the project in the 2014 budget. By the end of 2014 the total amount spent would be in the region of N9 billion. The question to ask is what has been the contribution of the private sector partners to the project?

7. ICT PARK, ASABA – Total Spent to Date: N2.3 billion. The Delta State government earmarked the sum of N1.3billion in the 2012 budget, to build a state of the art ICT park in Asaba, the Delta State capital. In the 2013 budget, the government allocated a further N1billion to the project, at that point, the ICT Park sited on the outskirts of Anwai-Asaba, had not taken off beyond foundation level. In the 2014 budget, no specific amount has been allocated to this project.

8. ASABA INTERNATIONAL AIRPORT – Total Spent to Date: Unknown. Despite all the claims and government propaganda that the project has been completed and fully operational, N4 billion was earmarked in the 2012 Budget for the completion of the Airport. Another N4 billion was allocated in the 2013 budget. Again the government has allocated a further N4billion to the project in the 2014 budget. Most Deltans are made to believe that the project has been completed and fully operational, with the publication of the number of passengers who have used the airport. So the question to ask is, what is the N4 billion allocated in 2014 budget meant for? Is it for wakis?

9. SECOND RUNWAY AND EXPANSION OF OSUBI AIRPORT – Total Spent to Date: N13.3 billion. Over N1.3 billion had been spent by the end of 2011 fiscal year. An additional N8 billion was earmarked in the 2012 budget and a further N4 billion allocated in the 2013 budget. Another N4.5 billion has been allocated to the project in the 2014 budget. By the end of 2014 the total amount spent would be in the region of N17.8 billion. The question to ask is, at the inception stage of the project, how much was earmarked for completion and what completion deadline was set?

10. KOKO PORT FREE TRADE ZONE – Total Spent to Date: N9 billion. Although a PPP project, N2 billion was earmarked in the 2012 budget to facilitate the quick take-off of the FTZ project. In the 2013 budget, the government has allocated a further N7billion to the project. The question to ask is what has been the contribution of the private sector partners to the project? There is no allocation to this project in the 2014 budget, so do we assume that the project is completed or has been put on hold. A new FTZ- Ogidigben Free Trade Zone has been started, for which the sum of N1 billion has allocated in the 2014 budget.

The government can win back the hearts of most Deltans, even if project completion timelines are missed, by imbibing the tenets of TRANSPARENCY and ACCOUNTABILITY. Infrastructure is the cornerstone for economic transformation and from the type of projects the government has embarked on, it is obvious that they mean well, but the implementation phases are in shambles. WE CAN DO BETTER AS A STATE.
Delta State Map

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2 Comments leave one →
  1. Anagafo Mike permalink
    January 31, 2014 10:02

    The government of Uduaghan is a fraud. Can his supporters come out boldly to show us on ground value for money in all the projects stated above?

  2. January 31, 2014 11:37

    I am shocked at the fraud called budgeting in Delta State and begin to wonder if there is a legislature with common sense in the state or just “rubber stamps”?

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