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One year later, the Federal Ministry of Works provides records for the re-award of the Lagos-Ibadan Expressway Contract

One year after procurement monitors made an FOI request for procurement records for the re-award of the Lagos-Ibadan expressway contract, the Federal Ministry of Works (FMW) has provided some of the requested information.

On the 24th of March 2014, Public and Private Development Center on behalf of procurement monitors, sent two (2) letters requesting for :

  • Procurement and Contract records for the terminated Lagos - Ibadan Expressway
  • Procurement and Contract records for the re-award of the Lagos - Ibadan Expresswa.

The FMW responded to the request for the re-award on the 17th of April, 2015 attaching the Request of 'No-Objection' letter sent to BPP, certificate of no-objection from BPP, a list of all tendered bids, minutes of the bid opening meeting, attendance list of the individuals and organizations, documentation on the scope of works involved in the repairs, bid evaluation meeting reports and recommendations and signed copies of the award letters.

The documentation provided also showed that the re-award of the contract was based on a restricted bidding method.

In order to proceed with the restricted bidding method, the FMW sought a N0-Objection certificate from the Bureau of Public Procurement (BPP). To justify the requested for restricted bidding, the FMW informed the BPP of the very poor performance of the Public Private Partnership (PPP) Concessionaire, Messrs Bi-Courtney Consortium Ltd on the Lagos - Ibadan Expressway over a 3 year period from May 8th, 2009 to November 19th, 2012.

According to FMW, the poor performance of the concessionaire resulted in fatal accidents, armed robberies, unprecedented traffic jams, security breaches and compromised public health and safety. Relying on Section 40(2a) of the Public Procurement Act 2007, the FMW recommended the following contractors to participate in the proposed restricted bidding exercise:

  • P.W Nigeria Limited
  • Setraco Nigeria Limited
  • R.C.C Nigeria Limited
  • Julius Berger
  • Dantata & Sawoe 

Section 40(2a) of the PPA 2007 provides that "where a procuring engages in restricted tendering on the basis that the goods, works and services are available only from a limited number of suppliers or contractors, it shall invite tenders from all the suppliers and contractors who can provide the good, work or service" After taking a critical look at the justification provided by the FMW for the proposed restricted bidding, the BPP submitted to the FMW that the capacity of a contractor is indeed critical and in light of the fact that Nigeria cannot afford any more failed projects, there is the need for the FMW to verify that the shortlisted firms can simultaneously actualize their ongoing projects and also cope with the new projects. The Bureau therefore advised FMW to ALWAYS set up a distinct Technical Assessment Committee that will inspect and confirm the claims of firms.

On the authority of the Section 54(4)(iv) of the PPA 2007, the BPP further reviewed the recommendations of contractors submitted by FMW and expanded the shortlist of contractors by introducing additional firms with similar capacities. The Bureau explained that this was done in order to eliminate any possible distortions in the tender exercises. To the previous list of 5 contractors for each section provided by the FMW, the BPP expanded the list of recommended bidders to participate in the selective tendering process to include:

  • CGC Nigeria Ltd
  • Arab Contractors O & A Nigeria Ltd

Thereafter the Bureau granted the 'No-Objection' to the FMW to proceed to the next stage of the tender process involving the modified list of the contractors on the condition that only financial competitiveness would be used to decide the least responsive evaluated bid.

Section 54(4)(iv) states that "upon receipt of a complaint, the bureau shall promptly revise an improper decision by the procuring or disposing entity or substitute its own decision for such a decision".

According to the evaluation report received from the FMW, five out of the seven selected contractors collected bid documents upon payment of stipulated tender fee as contained in the letter of invitation to tender.

The re-award of the Lagos - Ibadan expressway contract was split into two sections. Based on the financial proposals submitted, two tenders were recommended for award of contract.

The contracts were awarded to the companies who presented the lowest evaluated responsive tenders. They are:

  • Lagos - Shagamu, Lagos / Ogun States - awarded to Julius Berger
  • Shagamu - Ibadan, Ogun / Oyo States - awarded to R.C.C Nigeria Ltd

In response to the FMW's letter, PPDC has requested that the outstanding documents previously requested for be provided. These documents are the final contract award document and documentation on the status of the project.

Culled from: PPDC Procurement Bulletin


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