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BUA Cement Secures Contract to Complete Benin-Lokoja Road Using Tax Credit Scheme

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BUA Cement Secures Contract to Complete Benin-Lokoja Road Using Tax Credit Scheme

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BUA Cement Secures Contract to Complete Benin-Lokoja Road Using Tax Credit Scheme

BUA Cement Plc has been awarded a contract to complete a 60-kilometre section of the Benin-Lokoja Highway as part of the NNPCL Funding and Infrastructure Development Refreshment Investment Tax Credit Scheme.

The decision to assign this portion of the expressway to BUA Cement comes amid ongoing rehabilitation efforts for the entire route.

Minister of Works, Dave Umahi, revealed this development, citing the necessity for a new arrangement due to funding constraints. Out of the initial N896 billion allocated for the 284-kilometre road project awarded to four contractors in 2012, only N122 billion is available through the Tax Credit Scheme, leaving a shortfall of N775 billion.

During a meeting with Edo State Senate Caucus leaders, Senators Adams Oshiomhole and Monday Okpebholo, Minister Umahi discussed the need to bridge the funding gap to ensure the road’s completion. Representatives from BUA Cement and the four other road contractors were present at the meeting.

Under the new arrangement, each contractor will receive mobilization funds of approximately N9 billion to complete a six-kilometre stretch within their respective sections. BUA Cement will handle a 60-kilometre segment of the road, with a mandate to deploy concrete technology and deliver the project within six months.

To expedite the project, Minister Umahi announced that BUA Cement would work with three contractors and excise 10 kilometres from the existing contractors’ sections.

This strategic collaboration underscores the government’s commitment to enhancing infrastructure development and addressing the socio-economic significance of the Benin-Lokoja Highway.

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