Lagos/Calabar Coastal Road: FG Threatens Contract Termination

The federal government has threatened to terminate the contract of some sections of the Lagos/Calabar Coastal Road.

The Minister of Work, Dave Umahi made the threat at a meeting on the project with the construction firms-Julius Berger and China Civil Engineering and Construction Company, CCECC, in Uyo, the Akwa Ibom state capital on Saturday.

According to the minister, the federal government is unhappy with the slow pace of work on the Akwa Ibom and Cross River states axis of the project.

He explained that the reasons cited by the contractors in slowing down the pace of work, including that the state governments have not paid compensation was not genuine.

Umahi also expressed dismay on the non-commitment to Eleme to the port city of Onne, in Rivers State by  Raynoids Construction Company, RCC.

He warned the concerned construction firms that their contract would be terminated if they refused to increase the pace of work.

Part of what the minister said as the meeting: “If you talk to them they would say it is because of compensation and this governor, Akwa-Ibom State, had settled compensation issues and so we are giving them a marching order to CCECC to mobilise at least three sections of that road.

“The federal government has released enough money to fund the projects. The same thing with Julius Berger, by the end of this coming week, if Julius Berger fails to remobilise to site and the CCECC fails to mobilise to the sections of the road, the jobs will be terminated.

“The worst of roads in the entire South South remains this Akwa Ibom to Cross River through Itu and Odukpani and the section being done by RCC. RCC had collected over N40bn on that road; 15kilometres of  roads, N156 billion it inherited from the past administration, they are playing tricks.

“We have been on them to change their mindset and by the end of next week our 14 days notice of termination of contract will elapse, and we will terminate the projects and give to those who have mastery of laying concrete.”

The magazine reported the controversy that has trailed the road project, because not a few Nigerians insist that its timing is wrong at a time the country is facing serious economic challenges.