FG TERMINATES ROAD CONTRACTS OF THREE COMPANIES OVER ALLEGED NON-PERFORMANCE
The Federal Ministry of Works has terminated contract numbers 6,136, 6,137 and 6,138 with Mothercat Ltd, Dantata & Sawoe Construction Ltd and RCC Ltd, respectively.
The projects affected by the termination are the dualization of Obajana – Benin road, section II (Okene – Auchi) in Kogi/Edo State; the dualization of Obajana – Benin road, section III (Auchi – Ehor) in Edo State and the dualization of Obajana – Benin road section IV (Ehor – Benin) in Edo State.
This is contained in a statement released by Orji Uchenna Orji, Special Adviser (Media) to the Minister of Works on Monday.
According to the statement, the termination became necessary in view of the alleged inordinate delay by the affected companies in job performance and their failure, neglect and refusal to fulfill their contractual obligations as required by the Standard Conditions of Contract.
Orji stated that this had affected the timely completion of the projects and thus resulted in the expiration of the contracts by effluxion of time.
The statement read: “The projects which were awarded on 3rd December, 2012, were advertently abandoned by the contractors and no genuine commitment or good faith was shown towards executing the projects after accepting the considerations offered by the Federal Government and thereby exposing the road users to untold hardship due to the deplorable condition of the projects.
“The Honourable Minister has therefore directed the engineers in charge to take necessary steps to enter upon both the site and the works and take the same over from the affected companies.
“He further directed the engineers concerned to, upon doing the needful, arrange with the affected companies for a joint measurement of work so far done by the said companies preparatory to taking over the sites from the said companies.
“He warns that the Federal Ministry of Works under his watch will not condone acts of unseriousness and sabotage by contractors whose plan is to become a clog in the wheel of progress of the Renewed Hope administration which is determined to change the ugly narrative of Nigeria’s road infrastructure.
“He further warns that going forward, the government will not hesitate in terminating all projects that are funded but are non-performing.”
The affected contractors are yet to respond to the allegations.
At the same time, the Federal Government has suspended approval for the construction of new road networks across the country.
This was revealed by the Minister of Works, David Umahi on Sunday in Calabar, at the Federal Ministry for Works convened a stakeholders engagement on the proposed alignment for sections 3A and design for about 97km Spur of the Lagos-Calabar coastal highway project with a segment from Cross River State to South-east and North Central part of Nigeria.
According to him, the decision was a result of a directive by President Bola Tinubu, adding that the ministry will be prioritising the completion of ongoing projects in the country in the 2025 budget.
He explained that the Lagos-Calabar coastal highway has section 3A, about 38km, joining from the Akwa Ibom axis through Cross River State.
He added that there will be a spur of the same coastal highway, about 92km in Cross River State, making it a total of 130km to be constructed within Cross River State.
According to the minister of works, the 92km spur in Cross River State will cross Enugu State, Ebonyi, Benue, Kogi, Nasarawa, Abuja and Lagos states.
The minister frowned at the poor handling of the existing contract of Odukpani-Itu federal road, directing that the first warning will be issued to contractors to return to the site or risk revocation of their contracts.
On the Lagos – Calabar coastal highway project, Umahi, described the project as a significant initiative of President Bola Tinubu, aimed at enhancing connectivity and promoting economic growth along the coastal regions of Nigeria. “Once completed, the highway is expected to facilitate smoother transportation of goods and people, boost trade activities, and spur regional development,” he enthused.
He said the project is one of the president’s legacies that would out-live his Administration and many others to come.
On his part, the Cross river state, Governor Bassey Otu pledged his commitment to supporting the successful execution of the coastal highway project, as it portends great economic benefits for the state as well as the southern and north-central regions of Nigeria.
Represented by the Deputy Governor, Rt. Hon Peter Odey at the stakeholder’s engagement, the governor said his administration’s maximum cooperation and support towards the realisation of this crucial infrastructure development is inevitable, adding that the importance of a good road network to the economic development of the state, region and nation at large cannot be overemphasised.
He directed the state commissioner for works to engage with the team from the Federal Ministry of Works, and to ensure that nothing inhibits the smooth execution of the project, which is scheduled to begin in Calabar axis in August this year.
He also assured the minister of works, that the state government had secured the needed State Executive Council approval, to pay compensation to ease the right of way for the contractors handling the Odukpani–Itu federal highway.