Stories by Patrick Andrew Abuja
Julius Berger Plc and Reynolds Construction Company Nigeria Limited have suspended work on the Lagos-Ibadan Expressway over N8.94 billion debt owed them by the federal government. Th e fi rms had formally written to the federal government through the Federal Ministry of Power, Works and Housing informing the government that they would be unable to continue works on site because unbearable delays in the payment of agreed contract fees for works already executed. Checks have shown that the contractor handling the reconstruction and expansion works on the Section II from the Sagamu interchange to Ibadan, Reynolds Construction Company Nigeria Limited, with Contract No. 6205, had suspended further work on the project due to an outstanding debt of N8.94bn.
The RCC had in a letter addressed to the Minister of Power, Works and Housing, Babatunde Fashola, and dated June 2, 2017, called his attention to the worsening fi nancial situation of the project and pleaded for his intervention in order to ensure the continuation of work on the site. Similarly, Julius Berger in a letter confi rming the development stated, “It has become evident that the required adequate funding for the continuation of the project is not available. “We trust that you will understand that, therefore, and as a consequence of the unacceptable fi nancial risk to Julius Berger Nigeria Plc, we are left with no choice than to immediately commence suspension of the works on the project, as earlier notifi ed.” In a swift reaction, the minister, confi rmed the fi rms decision to suspend further works stressing that stated that the two contractors working on sections of the Lagos-Ibadan Expressway, Messrs Julius Berger and RCC had given notice of suspension of work on the site. According to Fashola, the letter from the RCC Managing Director, Mr. M. Nakhla, dated June 2, 2017, stated, “In view of the irregular payment and the attendant cash fl ow problem, we shall be constrained to suspend further execution of work unless there is an appreciable improvement in the project’s cash fl ow and adequate funding arrangement is put in place for further works.” Fashola said the letter was co-signed by the Division Manager, Julius Berger, Mr. W. Loesser; and the Commercial Division Manager, Mr. T. Meletschus
