The Federal Government has reached a mutual agreement with the contractors handling the rehabilitation of the Lokoja- Shintaku – Dekina – Anyigba road and the reconstruction of the Okene – Ajaokuta – Itobe dual carriageway in Kogi State on the way forward towards rejiging project delivery.
Minister of Works, Sen. (Engr) David Umahi disclosed this in a meeting held for contractors in Abuja on Thursday, as part of efforts to build effective roadmap to the funding and delivery of ongoing projects inherited from previous administrations.
Released in a statement by his aide, the Honorable Minister frowned at the delay of the contractors in achieving the key deliverables of the projects within the timelines and financial resources made available by the federal government.
He emphasized that the Renewed Hope administration of the President Bola Ahmed Tinubu, is committed to road infrastructure revolution anchored on the core values of quality, speed and value for money in project delivery.
On the contract for the rehabilitation of Okene- Ajaokuta – Itobe carriageway in Kogi State handled by CCECC Nig Ltd, he 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.
Umahi therefore directed the Director Highway North Central to issue warning letter to the contractor, to within 30 days, resume work on the site (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.
On the contract for the rehabilitation of Lokoja- Shintaku – Dekina – Anyigba road with a spur from Dekina to Ugbabo in Kogi State, handled by 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.
It was 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.
Umahi also directed that the consultancies for both contracts be mutually terminated pending when a new contract is procured on the projects.
The meeting was attended by key officials of the Federal Ministry of Works including Engr. I. D. Daikwo, Director, Highway North Central, Engr. I. U. Usman, Deputy Director Highway North Central, Mohammed A. Ahmed, Director Press and Public Relations among others.
