The Federal Executive Council (FEC) on Wednesday in Abuja, set up a team to work on a template to reduce cost of contract execution.
The aim is to bring the costs at par with what is
obtainable internationally, especially in other African countries.
Minister of Information, Labaran Maku, announced this after FEC meeting presided over by President Goodluck Jonathan at the State House.
Maku said the decision was sequel to growing concerns on the high cost of projects execution and the determination of Jonathan’s administration to reduce cost of governance.
He said that the Minister of Finance and the Coordinating Minister for the Economy (CME), Dr. Ngozi Okonjo-Iweala, was directed by Council to lead the team and work with relevant stakeholders.
Maku said the Council had also stopped the policy of paying consultants in full for any public projects before their completion.
He said it also directed that any contract to be presented before it for approval, must be accompanied with verifiable transitional plan to ensure that all projects awarded are completed smoothly and timely.
“ The Council has directed the CME to work along with other stakeholders in the public sector, to bring up what will be a comparative template about the cost of projects, particularly civil engineering projects, and even supply and other projects.
“In awarding consultancy contracts, it should be based on the volume of work done, and it should be so because sometimes when contracts are awarded and there are stoppages on the way, consultants demand payment for the period where most supervision did not take place.
“If the cost of consultancy is tied to the volume of work done, it will check waste and excess payment. ’’
Fielding questions from State House Correspondents on the spate of insecurity in the country, Maku said the Federal Government was on top of the situation and the security agencies made some arrests.
“Since this spate of violence started, this administration has been working round the clock and we have recorded many achievements. But there are certain security issues we cannot go and disclose on the pages of the newspaper. ”
He announced that all those involved in the Oct. 1, 2010 bomb explosions had been arrested and were offering useful information to the government, to tackle the challenges.
The Minister appealed to Nigerians to see the present situation as a new face in the country’s development that would take it sometimes to handle.