The federal government has issued a 30-day notice of termination to contractors handling the rehabilitation of Lokoja- Shintaku – Dekina – Anyigba Road and the reconstruction of Okene – Ajaokuta – Itobe dual carriageway in Kogi State over delay by the contractors.
Minister of Works, Engr. David Umahi, disclosed this on Wednesday after a meeting with the contractors at his office in Abuja.
A statement by the Special Adviser on Media to the Minister, Barr Orji Uchenna Orji, said Engr Umahi reached a mutual agreement with the contractors handling the projects in Kogi State on the way to the projects which were awarded in 2022 to CCECC Nig Ltd and TEC Engineering Company Nig Ltd with completion timeline of 2024.
According the statement, the Minister frowned at the delay by the contractors in achieving key deliverables of the projects within the timelines and financial resources made available by the federal government.
On the contract for the rehabilitation of Okene- Ajaokuta – Itobe carriageway in Kogi State bring handled by CCECC Nig Ltd, the minister noted that the project was awarded in 2022 with a length of 52.27km but the contractor has only achieved 1.97% completion (binder) on one alignment despite receiving ₦2.5 billion advance payment.
“He therefore directed the Director Highway North Central to issue a warning letter to the contractor to resume work on the site within 30 days using the old rate to achieve a milestone that is commensurate with the money they received, after which the balance of the job yet to be done would be mutually terminated to enable the Ministry procure the remaining section of the project for enhanced funding and execution,” he said.
Furthermore, on the rehabilitation of Lokoja- Shintaku – Dekina – Anyigba road awarded to TEC Engineering Company Nig Ltd, the Minister noted that the contract was awarded in 2022 but recorded only 1.04% completion despite receiving ₦1 billion as advance payment.
“It was directed that the contractor should lay 3km asphalt by December 2025 after which a final account would be made based on the milestone completed and the job would be terminated on mutual basis,” he added.
The Minister, further directed that the assessment for the funds already released shall be based on the old rate while the assessment for the funds to be accessed under the year 2025 budget shall be based on the new rate.
“The Minister also directed that the consultancies for both contracts be mutually terminated pending when a new contract is procured on the projects,” the statement said.
