The government led by President Bola Tinubu has officially canceled the 98km Oyo-Ogbomoso highway contract, which was awarded to Reynolds Construction Corporation (RCC).
According to the Minister of Engineering Dave Whahihithe contract will be re-granted by other contractors soon.
Naija News Umahi reportedly revealed this during federal road stakeholder participation in Oyo State on Thursday.
The event focused on the theme, “Enhanced Federal Roads” Oyo State: Challenges and sustainable solutions. ”
It is important to note that the construction of OYO/OGBOMOSO ROAD faces significant delays, resulting in many deaths due to accidents and financial losses caused by traders and farmers relying on this critical route to the northern and southern regions of the country.
In addition, the federal government recently terminated its contract with three companies on the grounds that they lacked the decision.
Contract numbers with Mothercat Ltd, Dantata & Sawoe Construction Ltd and RCC Ltd are 6136, 6137 and 6138, which hinders the project’s standard conditions for termination of the contract due to the contract’s “failure, neglect and/or refusal to perform their contractual obligations, respectively”. Completed in time and result in the expiration of the contract.
Additionally, the federal government has previously terminated 740 billion contracts due to similar non-performance issues, which restored 82 km Abuja-Kaduna double with Julius Berger (Nig.) PLC Lane.
On Thursday, despite the federal executive committee’s approval of funds, Umahi expressed concern about delays in mobilizing construction sites, which created huge difficulties for road users.
The minister stressed that the ministry will not tolerate negligence or vandalism by contractors that hinder the progress of the current government.
He also warned that the government would not hesitate to terminate any projects of funds that failed to be implemented.
