FG revokes N870b road contracts, 2,270 projects pending

The Minister of Works, Dave Umahi, ordered the termination of the contracts for sections II, III, and IV of the dualisation of Obajana-Benin Road as 2,270 road projects nationwide suffered delays.

Umahi axed the contracts 24 hours after issuing an ultimatum to the contractors handling the various road projects to sit up or lose their contracts.

Umahi upon assumption of office had stated that he inherited 2,600 uncompleted road projects but this figure has been reduced to 2,270 following the completion of 330 emergency projects after an appropriation of N300bn by the Federal Government.

The revoked contracts are put at the cost of N870bn at N2bn per kilometre after an initial review from N121bn.

The minister had on April 25 threatened to revoke poor-performing contracts.

Speaking on Sunday during the presentation of the routes of section 3A and the Trans-Africa Highway traversing Cross River through Ebonyi, Kogi, Nasarawa and Abuja, Umahi expressed dismay at the slow pace of work on the Akwa Ibom and Cross River – Calabar-Itu section awarded to three contractors.

While restating his earlier threat to axe non-performing construction firms, Umahi said, “If Julius Berger (Plc) fails to return to the site at the expiration of the seven-day ultimatum issued today (Sunday), we will terminate the contract. Sermatech Limited, an indigenous contractor, did a better job than Berger.

“Sustenance is based on the improvement of our roads. Contractors are playing tricks on our road construction; if we put one kobo in his hands he must give us an affidavit. The contractor must put his feet on the throttle. If you are climbing the hill, will you remove your leg from the throttle? No.”

He warned contractors who think it is still ‘business as usual’ when handling government projects that the old order had changed, insisting that no amount of lobby would save them if they failed to perform.

He reiterated the resolve of the Tinubu administration to complete all inherited road projects and the three legacy road projects under the Renewed Hope Agenda.

He added that other projects related to the three legacy projects would be assessed to know the extent of work and what needed to be done.

Announcing the termination of the N870bn highway contracts in a statement on Monday, the Special Adviser on Media to the Minister, Uchenna Orji, explained that the affected projects included 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.

Orji said, “The termination of the said contracts became necessary given the inordinate delay by the affected companies in job performance and their failure, neglect and or refusal to fulfil their contractual obligations as required by the standard conditions of the contracts.

“This has affected the timely completion of the projects and thus resulted in the expiration of the contracts by effluxion of time.

“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.’’

Continuing, he added, “The honourable minister has, therefore, directed the engineers in charge to take necessary steps to enter into both the sites and the works and take the same over from the affected companies.

“He further directs 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, and this directive is without prejudice to the exercise of other rights of the Federal Government under the contract.”

Orji further recalled that the minister had earlier warned that the Federal Ministry of Works under his watch would 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 the minister said was determined to change the ugly narrative of Nigeria’s road infrastructure.

“The minister further warns that going forward, the government will not hesitate to terminate all projects that are funded, but are non-performing.”