The Federal Executive Council has approved N1.4billion contract for the design of the headquarters of the Department of Petroleum Resources, DPR.
The approval was given at Wednesday’s cabinet meeting presided over by President Muhammadu Buhari.
Minister of State for Petroleum, Ibe Kachikwu, who briefed State House correspondents after the meeting, said contract was awarded to Messrs Arteck Practice Limited.
Kachikwu said the contract was for the design the 12-floor building on a plot which has already been allocated to by the Federal Capital Territory, FCT.
According to Kachikwu, the approval was to enable the DPR, which is currently based in Lagos to relocate its headquarters to Lagos.
He said the agency is the “regulatory and supervisory arm of the ministry of petroleum, and is instrumental in terms of income generation.”
Asked if the N1.4billion was not too high as amount for the design of the building, Kachikwu said it was the lowest bid received by the DPR Tenders’ Board.
“The contract was awarded to DPR tenders board, their bid was the lowest, the highest bid was about N3 billion; the next was over 2billion and they came out with N1.4billlion.
“The total projected potential cost for the building when it is done is about N35 billion.
“So if you look at that as a percentage of the work, it is absolutely insignificant.
“In international terms it is very, very justifiable, it is less than two per cent.”
Kachikwu said the previous plan of the project, which had was to have a car park of another five floors, had to be changed in line with the zoning policy of the FCT.
He said it was also because of the need to take possession of additional green area that was assigned to the DPR.
“So they will to build a lot of parking institute within the building.
“I think because of the amount of work to be done and in line with international practice, it is quite frankly very reasonable.”
He said a lot of the funding for the project would come from the DPR.