PUNCH
The Federal Government on Monday revoked the N870bn highway contracts awarded to three construction companies: Dantata & Sawoe, MotherCat, and RCC, for non-performance.
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.
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