The President Bola Tinubu-led government has officially cancelled the 98km Oyo-Ogbomoso Road contract, which was awarded to Reynolds Construction Company (RCC).
According to the Minister of Works, Dave Umahi, the contract would soon be re-awarded to a different contractor.
OsunDailyNG reports that Umahi disclosed this on Thursday during a Federal Roads Stakeholders’ engagement held in Ibadan, the capital of Oyo State.
The event was focused on the theme, ‘Enhancing Federal Roads in Oyo State: Challenges and Sustainable Solutions.’
It is important to note that the construction of the Oyo/Ogbomoso road has faced significant delays, resulting in numerous fatalities due to accidents and financial losses for traders and farmers who rely on this critical route connecting the northern and southern regions of the country.
Additionally, the Federal Government has recently terminated the contracts for the Obajana-Benin Road with three different companies, citing their lack of performance as the reason for this decision.
The contracts numbered 6136, 6137, and 6138 with Mothercat Ltd, Dantata & Sawoe Construction Ltd, and RCC Ltd, respectively, were ended due to the contractors’ “failure, neglect, and/or refusal to meet their contractual obligations as stipulated by the Standard Conditions of Contract,” which has hindered the timely completion of the projects and led to the expiration of the contracts.
Furthermore, the Federal Government had previously terminated a ₦740 billion contract for the rehabilitation of the 82km Abuja-Kaduna dual carriageway with Julius Berger (Nig.) Plc due to similar non-performance issues.
On Thursday, Umahi expressed concern over the delays in mobilizing to the construction sites, despite the Federal Executive Council’s approval of funds, which has caused significant hardship for road users.
The Minister emphasized that the ministry would not tolerate any acts of negligence or sabotage by contractors that impede the progress of the current administration.
He also warned that the government would not hesitate to terminate any funded projects that fail to perform adequately.
