The Minister of Works, David Umahi, has terminated the contract for the construction of the Ekim-Odukpani section of the vital Calabar-Itu Highway, citing poor performance and an “obvious lack of capacity” by the contractor.
The decision was announced by the Minister on Saturday during an unscheduled inspection tour of the highway, which is part of the larger Lagos-Calabar Coastal Highway project.
Failure to Meet Terms
The revoked contract was being executed by Raycon Construction Company. Minister Umahi stated that the firm failed to meet the agreed terms and conditions for the intervention project, leading to the immediate directive for termination.
“We are disappointed at the poor performance of the contractor. The company has shown an obvious lack of capacity to perform. This job is beyond their capability,” Umahi stated.
The Minister confirmed that the ministry will issue a formal stop-work order to Raycon and subsequently conduct a joint assessment of the work completed before bringing in a new firm.
Umahi noted that the section was initially awarded as an intervention contract after it was taken over from Julius Berger due to an “unreasonable price” offered by the previous company.
Commitment to Standard Completion
The termination is the latest move in the Federal Government’s crackdown on underperforming infrastructure contractors. Minister Umahi emphasized that the contract would be swiftly re-awarded to a firm capable of completing the project to the required standard.
The Calabar-Itu Highway has been fraught with significant issues, including chronic slow progress and non-mobilization by contractors, leading to previous ministerial warnings and threats of contract termination against non-performing firms.
Hobnob News reports have consistently highlighted lawmaker concerns and government efforts to accelerate construction on the critical highway, where minimal progress has often been recorded despite substantial sums collected, resulting in potential project delays.
About The Author
