Construction Giants Costain West Africa Plc (Costain WA) has partnered Niger Insurance Plc on housing development as it been awarded a multi-billion contract. This was contained in a statement made available to Proshare NI today in LagosNigeria.
Costain WA is expected to develop residential apartments that incorporate luxury and highly functional amenities at the former ChinaTown located on Okotie-Eboh Close in the South West Ikoyi area of LagosState.
The project will include renovation of an existing 5-storey building and construction of 7-storey building, facility and service quarters.
Phil Wharton, Managing Director (MD) of the Construction Company affirmed that the project is expected to be completed and ready for delivery by the third quarter of 2009.
ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Â¦ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œThe steady growth of the housing market has presented an excellent opportunity to expand our activities into the residential development market. These projects are a testament to the uniqueness and versatility of Costain WA in what we offer to our clients locally and internationallyÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â he said.
In the same vein, Ayodeji Karim, Director of Operations (DOP) at Costain WA affirmed while commenting on possible challenges faced in completing the Niger Insurance project; that the cost escalation problem between committed projects and future projects is the main challenge.
ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Â¦ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œWe make it a point of working within time frame and practice good planning. That is how we overcome any effects of the price escalation. Completing projects ahead of deadlines is the way to cut costs and manage cost escalation. Delayed and unplanned projects do pay a heavy price due to cost escalationÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â Karim affirmed.
Sources confirmed to Proshare NI that the Costain WA Niger Insurance partnership is worth over N2.0 billion.ÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Â¦ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œThe man who can clarify the amount involved in the contract has travelled to South Africa, but I can assure you it is over N2.0 billionÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â the source said.
Costain WA in December, 2007 sought to raise over N8.0 billion by way of hybrid offer by offering to members of the Nigerian Investing Public 519,740,000 Ordinary Shares of 50 Kobo each at N11.00 per share and 178,162,966 Ordinary Shares of 50 Kobo each at N13.00 of Rights Issue and offer by way of subscription respectively.