The Federal Ministry of Power, Works and Housing has announced that
Julius Berger Nigeria Plc has finally suspended work on the Lagos-Ibadan
Expressway.
It sad the development was not unconnected with delays in the payment of agreed contract fees for work already done.
Checks have shown that the contractor handling the reconstruction and
expansion works on the Section II from the Sagamu interchange to
Ibadan, Reynolds Construction Company Nigeria Limited, with Contract No.
6205, had suspended further work on the project due to an outstanding
debt of N8.94bn.
The RCC had in a letter addressed to the Minister of Power, Works and
Housing, Babatunde Fashola, and dated June 2, 2017, called his
attention to the worsening financial situation of the project and
pleaded for his intervention in order to ensure the continuation of work
on the site.
The Julius Berger letter stated, “It has become evident that the
required adequate funding for the continuation of the project is not
available. We trust that you will understand that, therefore, and as a
consequence of the unacceptable financial risk to Julius Berger Nigeria
Plc, we are left with no choice than to immediately commence suspension
of the works on the project, as earlier notified.”
However, Fashola, in a statement issued by his Special Adviser on
Communications, Mr. Hakeem Bello, on Sunday, stated that the two
contractors working on sections of the Lagos-Ibadan Expressway, Messrs
Julius Berger and RCC had given notice of suspension of work on the
site.
According to Fashola, the letter from the Managing Director, RCC, Mr.
M. Nakhla, which was dated June 2, 2017, stated, “In view of the
irregular payment and the attendant cash flow problem, we shall be
constrained to suspend further execution of work unless there is an
appreciable improvement in the project’s cash flow and adequate funding
arrangement is put in place for further works.”
Fashola said the letter was co-signed by the Division Manager, Julius
Berger, Mr. W. Loesser; and the Commercial Division Manager, Mr. T.
Meletschus.
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