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Due Process and Project Monitoring Bureau Office of the Executive Governor

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Due Process and Project Monitoring Bureau Office of the Executive Governor JIGAWA STATE GOVERNMENT DUE PROCESS AND PROJECT MONITORING BUREAU OFFICE OF THE EXECUTIVE GOVERNOR END OF YEAR PROJECTS REPORT JANUARY TO DECEMBER, 2019 WEB: WWW.JIGAWADUEPROCESS.COM EMAIL: [email protected] CONTENTS SECTION (A) - EXECUTIVE SUMMARY SECTION (B) - CHARTS SECTION (C) - PRE-CONTRACTS EVALUATIONS JANUARY TO DECEMBER, 2019 SECTION (D) - CONTRACTS AWARDED JANUARY TO DECEMBER, 2019 SECTION (E) - COMPLETED PROJECTS SECTION (F) - ON-GOING PROJECTS - MINISTRY OF HEALTH - MINISTRY OF WATER RESOURCES - MINISTRY OF WORKS AND TRANSPORT - MINISTRY OF EDUCATION, SCIENCE & TECHNOLOGY - MINISTRY OF LAND AND HOUSING - MINISTRY OF COMMERCE - DUTSE CAPITAL DEVELOPMENT AUTHORITY - CABINET OFFICE - MINISTRY OF INFORMATION - JIGAWA SATTE POLYTECHNIC, DUTSE - MINISTRY OF FINANCE AND ECONOMIC PLANNING - JIGAWA STATE COLLEGE OF ISLAMIC & LEGAL STUDIES, RINGIM - BINYAMINU USMAN POLYTECHNIC, HADEJIA - MINISTRY OF ENVIRONMENT - JIGAWA STATE INFORMATICS INSTITUTE, KAZAURE - GOVERNMENT HOUSE - DIRECTORATE OF EONOMIC EMPOWEERMENT - DEPUTY GOVERNOR’S OFFICE EXECUTIVE SUMMARY. The 2019 Budget termed “Budget for Sustained Economic Growth and Social Transformation 11” was conceived to sustain the momentum of progress towards the attainment of medium-term objective of creating a self-sustaining local economy that fully leverages on productive potentials of the state. Also to continuously improve access to, and quality of, public service delivery particularly in the basic social services sectors including social protection. In view of the above statement from year 2019 budget speech by His Excellency the Governor, the Bureau as an organ responsible for monitoring the implementation of capital projects hereby present its end of year report. The end of year 2019 report consists of four sections only: Pre-contract Evaluations, Contracts Awarded, Completed Projects and Ongoing Projects report. PRE-CONTRACT EVALUATIONS. As at the end of reporting period, projects worth N14,727,910,392.66 only were submitted for vetting out of which the Bureau recommended N14,520,849,570.67 only for execution thereby saving N207,060,821.99 only (1.4%) in favor of the government. This portrays a positive response by government agencies in terms of adequate costing of their projects in line with due process guidelines. Furthermore, this became possible as a result of timely production of the price list data book and compliance with its content by some government agencies accordingly. Though, training on use of procurement planning template has been conducted in the state by State Partnership for Accountability, Responsiveness and Capability (SPARC), however most MDAs are yet to put it to use adequately there by reducing the compliance level of the procurement exercise. It should be noted that this document is expected to be part of budget process requirement as well as procurement process respectively. CONTRACTS AWARDED. A total of N73.970 billion was budgeted for capital expenditure, both for on-going projects and new ones, representing 47% of the total budget of N157.540 billion in the year 2019. Currently, contracts worth N13.231 billion only were awarded, representing 17.88% of the capital provision. Though it is the practice of the current administration to implement most of the capital intensive projects by means of “Open Tender” process, in 2019 only 71.88% were awarded through that process against the bench mark of 80% as per best practice. It is worth noting that the projects awarded by the open tender process, last year (2018), stand at 93% only. While projects awarded above threshold of N100million, by open competitive process, represent 58.69% only this year against 97% in the previous year 2018. This might not be unconnected with the additional works awarded on some mega ongoing projects in the state, to satisfy the aspirations of the communities in which the projects were sited. Namely it includes some roads projects in Hadejia township, Babura township, Jigawar Danalli, and two hospitals projects in Hadejia and Birnin Kudu . Total Contracts Awarded in 2019; -Contracts Awarded by Open Competitive Bidding = N9,510,649,219.70 (71.88%) -Contracts Awarded by Selective Bidding Process = N2,942,639,760.80 (22.24%) - Contracts Awarded by Nominative Bidding Process = N 778,255,567.58 (5.88%) Total = N13,231,544,548.08 (100%) Contracts Awarded Above Threshold of N100million in 2019; -Contracts Awarded above Threshold (N100 m), by Open Competition = N3,451,823,705.52 (58.69%) -Contracts Awarded above Threshold (N100m), by other method =N 2,429,581,418.90 (41.31%) Total =N 5,881,405,124.42 (100%). POST CONTRACT EVALUATION. Projects with contract value of N123,576,349,031.75 billion were being reported under this section. Most of the projects, at various stages of completion, were being carried forward from the previous years. It is anticipated that about half of all the on-going projects will be completed by the end of this year if there is stability in capital receipt from the federation account. The only exception that will be carried to preceding years include, among others, Eastern bye pass road i.e western bye pass road i.e. Maigatari-Galadi-Diginsa- Birniwa road, and others awarded at the end of previous year 2019. While Jigawa University project ,B/kudu new general Hospital, Guri, Garki, Gantsa General hospitals, and Hadejia and Kazaure Specialist Hospitals, will also spill to next year accordingly. • COMPLETED PROJECTS; This section contains projects that are 100% completed worth N38,803,305,043.60 only, 30.89% of the N123.576 billion projects being reported on. It is worth noting that the percentage achieved is low despite the declaration by government that most of the projects will be completed within the year. This is mainly due to paucity of funds from the federation account. • ON-GOING PROJECTS; The value of on-going projects being reported under this section amounts to N84,773,043,988.15 only (69.11%) of the total under consideration. The figure is staggering and could not be provided for in next year’s budget (2020) to actualize the completion of all on-going projects but rather a percentage of it. OBSERVATIONS. It has been observed that there is a lot of improvement by government agencies, to date, in packaging their capital projects for vetting by the Bureau as highlighted in the pre -contract evaluation process whereby 7.3% was saved from vetting exercise within the period. This is largely due to adoption of the revised rates being produced regularly by the Bureau in conjunction with the MDAs of government. Despite this positive trend, absence of a comprehensive procurement plan by MDA’S, reduces the chances of optimum participation by contractors in all bidding process in terms of adequate preparation and also reduce the attainment of full compliance with the existing procurement law. It was observed that only 72% of contracts awarded by government, this year, followed open competitive tender processes which need to improve in line with best practice, above 80%, to be abreast with donor agencies requirement. The law provision which requires that for all contracts the value of which is above N10.00 million a performance bank guarantee must be presented is yet to take effect despite several reminders forwarded by the Bureau to government. The use of Standard Bidding Document (SBD) by agencies during tender process is yet to be complied with in full despite extensive training conducted by SPARC and emphasis made by the Bureau, to achieve compliance with best practice as provided by law. Many contracts awarded from the previous year are yet to make meaningful progress due to nonpayment of contractual obligations by government, caused by reduction in capital receipt from the federation account. CONCLUSION/RECOMMENDATION. Government agencies are advice to prepare a comprehensive procurement plan for all the proposed capital projects, approved within the budget, and forward it to the budget department and the Bureau so as to achieve full compliance of the procurement law which will allow every contractor to get prepared for bidding in good time. The use of relevant tender processes, as prescribed by law, should always be considered for the award of contracts for works, goods and services, except in special circumstances where the government direct otherwise, such that the maximum benefit of the system could be harnessed. The law provision which mandate the presentation of performance bank guarantee by prospective contractors should be activated in the council award letter so as to scare unserious contractors in participating in government business. All contracts bidding process should be carried out as per Standard Bidding Documented (SBD) presented to each MDA in line with best practice as per law compliance. Government should set up a Committee to advice on how to generate more revenue and reduce the dependency of capital receipt from the federation account so as to meet the state contractual obligations. ……………………………………… …………………………………… Alh. Garba Halilu Sara Ado Hussaini MON Special Adviser. Director General. SECTION ( B ) CHARTS JANUARY TO DECEMBER, 2019 PROJECTS BEING EXECUTED BY MINISTRIES/AGENCIES JANUARY-DECEMBER, 2019 ENVIRONMENT FINANCE JS POLY TECHNIC INFORMATION COMMERCE ECONOMIC EMPOWERMENT PROJECTS BEING EXECUTED BY MINISTRIES/AGENCIES JANUARY-DECEMBER, 2019 68,210,461,519.59 20,100,894,380.81 15,008,150,836.44 9,653,818,005.82 4,587,643,851.15 2,926,246,754.80 966,545,560.70 WORKS & WATER DCDA EDUCATION HEALTH LAND & HOUSING CABINET
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