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Jigawa State Government JIGAWA STATE GOVERNMENT DUE PROCESS AND PROJECT MONITORING BUREAU OFFICE OF THE EXECUTIVE GOVERNOR END OF YEAR REPORT JANUARY-DECEMBER, 2011 CONTENTS SECTION (A) - EXECUTIVE SUMMARY SECTION (B) - CHARTS SECTION (C) - COMPLETED PROJECTS SECTION (D) - ON-GOING PROJECTS - MINISTRY OF HEALTH - MINISTRY OF WATER RESOURCES - MINISTRY OF WOMEN AFFAIRS AND SOCIAL DEVELOPMENT - MINISTRY OF ENVIRONMENT - MINISTRY OF WORKS AND TRANSPORTS - MINISTRY OF EDUCATION, SCIENCE & TECHNOLOGY - MINISTRY OF RURAL INFRASTRUCTURE & COMMUNITY DEVELOPMENT - MINISTRY OF LAND AND HOUSING - MINISTRY OF COMMERCE - DIRECTORATE OF ECONOMIC EMPOWERMENT - DUTSE CAPITAL DEVELOPMENT AUTHORITY - CABINET OFFICE - MINISTRY OF INFORMATION - MINISTRY OF AGRICULTURE - JIGAWA STATE COLLEGE OF EDUCATION, GUMEL - JIGAWA STATE COLLEGE OF ISLAMIC & LEGAL STUDIES, RINGIM - JIGAWA STATE INSTITUTE OF INFORMATION TECHNOLOGY, KAZAURE - SCIENCE & TECHNICAL SCHOOLS BOARD - JIGAWA STATE POLYTECHNIC, DUTSE - ISLAMIC EDUCATION BUREAU - JIGAWA STATE COLLEGE OF AGRICULTURE, HADEJIA - MINISTRY FOR LOCAL GOVERNMENT - GOVERNMENT HOUSE - MINISTRY OF JUSTICE SECTION (E) - PRE-CONTRACTS EVALUATIONS SECTION (F) - CONTRACT AWARDED JANUARY TO DECEMBER, 2011 EXECUTIVE SUMMARY. In line with the governor’s statement during the year 2012 budget speech that ‘ 2011 was an election year, the budget was conceived largely to consolidate most of the initiatives pursued since August 2007. Indeed, despite amendments to the appropriation law, the initial objective of using the medium of 2011 to consolidate on most of our infrastructural and human development programmes has been significantly achieved’. The Bureau as an organ responsible for monitoring the implementation of these development programmes and it’s publication i.e. the details of major contracts, hereby present end of year 2011 report. The report consists of four sections only which include Completed and On-going Projects, Pre-contract Evaluations and Contracts Awarded within the period under review. PRE-CONTRACT EVALUATIONS During the period under review projects worth N20,365,001,005.39 only (353 No) were submitted for vetting out of which the Bureau recommended N19,221,333,968.27 only for execution thereby saving N1,143,667,037.12 only (5.6 %) in favour of the government . It could be observed that in the third quarter report a total of 7% was saved in pre-contract evaluation, however, with the end of year approaching some MDAs under estimated their projects of which the Bureau had to intervene and jack up the proposals to reasonable amounts to allow for tender accordingly. This might not be unconnected with the inflation recorded of some construction materials within the last quarter of 2011 e.g. cement and reinforcement and as that time the revised rates for construction works was not made available by the Bureau to enable MDAs be guided accordingly. On a final note a saving of not more than 10% of an expenditure portrays a positive response by government agencies in terms of adequate costing of their projects in line with due process guidelines. CONTRACTS AWARDED. The sum of N34.75 billion was budgeted for capital expenditure, both for on-going projects and new ones, representing 45% of the total budget this year. Projects worth N20,592,589,613.06 only were awarded as at December 2011 representing 59.30% of capital allocation for both on-going and new projects. This figure covers both new projects and variation/additional works on existing projects. Some of the major variations include New state secretariat project N2.637 billion, State High court complex N0.524 billion, Dandi – Kanya road N2.665 billion, K/Auyo – K/Hausa road N0.469 billion, Hadejia – G/gabas road N0.298 billion and B/kudu Nursing school N0.154 billion. As earlier highlighted the sum of about N5.212 billion and N29.538 billion only were allocated to both new and on-going projects respectively, which was later adjusted to meet the current requirement accordingly. Despite all the above the total expenditure recorded, as reported, on this expenditure component does not exceed 82% budget performance. POST CONTRACT EVALUATION. Projects with contract value of N69,713,352,038.22 billion were being reported under this section. Most of the projects, valued at N47.317 billion, at various stages of completion, were being carried forward from the previous years as some have exceeded their completion periods. It is worth noting that about 40% of the projects carried forward from the previous years were completed with the exception of the Township road projects (6No), Streetlight projects, Inter town road projects (7No) and some building works like the new state secretariat, Deputy Governor’s residence and office complex, office complex at House of Assembly, Ministry of Land office complex, and High court complex (valued at N39.596 billion). COMPLETED PROJECTS: This section contains details of completed projects 100% worth N18,348,828,727.05 only (26%) out of the N69.713 billion contracts being reported . As earlier highlighted above, some projects are at various stages of completion and government is making sure that no contractor is allowed to participate in tender process if he has an outstanding contract yet to be completed. It is worth noting that, 90% of the projects carried forward from 2007 to 2010 were completed there by consolidating most of government’s infrastructural and human development programmes. ON-GOING PROJECTS: The value of on-going projects being reported under this section amounts to N51,364,523,311.17 only (74%) of the total contracts under consideration. The projects are at various stages of completion including those carried forward from previous years as highlighted above. OBSERVATIONS. It has been observed that quite a number of projects exceeded their agreed completion period as signed on the agreements without convincing reasons. This attitude results in cost overrun of the projects to the preceding year thereby distorting the intended direction of a proposed budget. Furthermore, the intended benefit to be driven from the project by the host communities was further delayed and all their aspirations elongated. Despite the mandate given that all Contracts Agreements signing be witness by Justice Ministry some MDAs are yet to comply there by producing legal documents not favourable to government. The performance of some projects under Ministry of works, DCDA, Ministry of Commerce and Cabinet Office is not encouraging despite regular payments as when due. Their performances compared with time lapse need improvement to be able to achieve the desired targets. The projects include the following; Kafin Hausa – Bulangu Road. Street Lights at Ringim and Gumel. Babura-Yarkirya-Kuzunzumi Road. New State Secretariat Complex. New High Court Complex. New Deputy Governor’s Office and residence complex. Block of offices and Clinic at Maigatari EPZ. Ministry of Land office complex. Construction of 10 No blocks of 2Bedrooms transit accommodations at State Service School Bauchi. CONCLUSION/ RECOMMENDATION. In conclusion, the above observations raised if adequately addressed, will help improve budget performance and enhance value for money on the projects thereby making the public appreciate government efforts more towards uplifting their well being. Finally the following recommendations were proffered for improved performance and decision making.; Government agencies are advice to make adequate and timely preparations for their capital projects which will result in timely clearance by the Bureau, thereby enhancing the chances of adequate budget performance. It is recommended that all MDAs contracts agreements be vetted and counter signed by the Justice Ministry to avoid embarrassment in the event of litigations. The Justice Ministry should ensure that the following provisions were adequately captured on all Contracts agreements signed by MDAs as provided by relevant laws of the state i.e (1) Payment of 2% penalty on the remaining works by contractors for delay in completion period. (2) Twelve month retention period on construction projects. (3) Presentation of 10% Performance Insurance Bond, by the contractor, which will be returned back after the expiration of the retention period to the contractor. (4) Contractors not to sublet projects without clearance from MDAs. All MDAs should ensure that all contractors handling Building construction works secure a four year Fire and special perils Insurance cover, maximum 1%, out of contract preliminary provisions, for the building, from an insurance firm resident in the state capital. Details of payments and releases on capital projects to MDAs and contractors need to be copied to the bureau to improve its information base by the treasury department. ………………………. …………………… Lawan Y. Danzomo Ado Hussaini Special Adviser Director General. SUMMARY SHEET S/N Executing Agency Completed (N) On-going (N) Total (N) 1 Ministry of Health 230,405,574.75 1,100,891,232.09 1,331,296,806.84 2 Ministry of Water Resources 203,053,522.48 12,165,708.50 215,219,230.98 3 Ministry of Women Affairs 20,235,024.43 - 20,235,024.43 4 Ministry of Environment 28,880,511.19 135,109,479.80 163,989,990.99 5 Ministry of Works & Transport 10,557,444,489.11 24,686,922,088.30 35,244,366,577.41 6 Ministry of Education, Science & Technology 877,998,581.04 265,605,341.54 1,143,603,922.58 7 Ministry of Rural Infrastructure & Community Dev. 589,517,322.62 102,500,000.00 692,017,322.62 8 Ministry of Land and Housing 217,049,040.33 4,393,662,240.69 4,610,711,281.02
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