Abuja — The proposed plan to construct another bridge across the River Niger at Onitsha through a Public-Private-Partnership (PPP) at N58 billion has suffered a major setback. This followed the inability of the project's principal partners - the Federal Government, Anambra and Delta States and the construction firm, Gitto Nigeria Limited, to reach agreement on some of the contractual issues.

THISDAY checks revealed that the parties to the project are yet to put final seal on the terms of the concession agreement more than three years after the bridge project was initiated.

Under the terms of the concession, the Federal Government is to foot 20 per cent of the total cost of the project, Anambra and Delta States will contribute 10 per cent each, while Gitto Group is to contribute 60 per cent towards the execution of the project..

The plan to build a second Niger Bridge was conceived in 2005 by former President Olusegun Obasanjo to serve as alternative route of passage to the South-east states just as the existing bridge constructed five decades ago is threatening to give way.

A source at the Federal Ministry of Works, Housing and Urban Development told THISDAY that the Federal Government in an effort to revive the project, had ordered a review of the whole contract and had asked the two participating states to come forward with suggestions on how to kick-start the project.

The source, however, said though the ministry planned to invite the contractor and the participating states to see how the project could be renegotiated, no concrete step had been taken to see it through.

There are also indications that some parties who are not well disposed to having Gitto Nigeria Nigeria Limited execute the project are creating obstacles for the implementation of the bridge contract.

"There are persons who are against Gitto handling the Niger Bridge project on the grounds that the amount involved is very huge for a single firm to handle, preferring instead that the contract be split to accommodate their own interests," the source said.

But Gitto Nigeria Limited, the German firm handling the project, said it had completed all necessary documentation to enable the smooth take-off of the project including a Due Process Certification since April 2007.

The management of the firm, which is leading the private sector consortium on the project, also claimed it had in its possession a letter of intent as far back as May 23rd, 2007 and a Federal Executive Council (FEC) approval.

The company said it had complied with the requirement of the Debt Management Office (DMO) in relation to the execution of the concession contract.

In view of this, the company said it had submitted the final concession agreement draft to the ministry's legal department and was awaiting invitation for signing.

The company went further to say it had written several letters to the ministry asking for urgent conclusion on the matter based on the directive issued by the Senate Committee on Works without any reply.

The construction firm said although it had mobilized resources and purchased equipment worth over $40 million, it could not mobilize to site to commence work on the project without a formal concession agreement binding parties to the contract.