N2.5b payment: Umahi orders CCECC back to project site
3 min read
By Chris Ochayi
The Minister of Works, Engr. David Umahi has hinted of possible termination of contract for the rehabilitation of Okene- Ajaokuta–Itobe carriageway in Kogi State being handled by CCECC Nig Ltd,
Umahi said the project was awarded in 2022 with a length of 52.27km but the contractor has only achieved 1.97% completion (binder) on one alignment despite receiving N2.5 billion advance payment.
He therefore directed the Director Highway North Central to issue a warning letter to the contractor, to within 30 days, resume work on the site (using the old rate) to achieve a milestone that is commensurate with the money they received.
He said the balance of the job yet to be done would be mutually terminated to enable the Ministry procure the remaining section of the project for enhanced funding and execution.
Engr. Umahi made the remarks at a meeting in Abuja where he reached a mutual agreement with the contractors handling the rehabilitation of Lokoja- Shintaku – Dekina – Anyigba road and the reconstruction of Okene – Ajaokuta – Itobe dual carriageway in Kogi State.
The meeting was convened on how to find a way forward towards rejiging project delivery roadmap with respect to the projects which were awarded in 2022 to CCECC Nig Ltd and TEC Engineering Company Nig Ltd and which were meant to have been completed in 2024.
The Minister frowned at the delay of the contractors in achieving the key deliverables of the projects within the timelines and financial resources made available by the federal government.
He emphasized that the Renewed Hope administration of the President of the Federal Republic of Nigeria, *His Excellency, Bola Ahmed Tinubu, is committed to road infrastructure revolution anchored on the core values of quality, speed and value for money in project delivery.
On the contract for the rehabilitation of Lokoja- Shintaku – Dekina – Anyigba road with a spur from Dekina to Ugbabo in Kogi State, handled by TEC Engineering Company Nig Ltd, the Minister noted that the contract was awarded in 2022 but recorded only 1.04% completion despite receiving N1 Billion as advance payment.
It was directed that the contractor should lay 3km asphalt by December 2025 after which a final account would be made based on the milestone completed and the job would be terminated on mutual basis.
It was further directed that the assessment for the funds already released shall be based on the old rate while the assessment for the funds to be accessed under the year 2025 budget shall be based on the new rate.
Umahi also directed that the consultancies for both contracts be mutually terminated pending when a new contract is procured on the projects.
The meeting was attended by key officials of the Federal Ministry of Works including Engr. I. D. Daikwo, Director, Highway North Central, Engr. I. U. Usman, Deputy Director Highway North Central, Mr. Mohammed A. Ahmed, Director Press and Public Relations and Engr. Gana Musa Patiko, Federal Control of Works, Kogi State.
Others in attendance were: the representatives of the contractors, Mr. Shaun, Marking Manager of TEC Engineering Company Nig Ltd and Mr. Zhou, the Senior Executive Director of CCECC Nig Ltd; the project consultants including, Mr. Sesan Adeboyejo and Engr. Ene Wakama, as well as the Commissioner for Works, Kogi State, Hon. Engr. Muhammed A. Yusuf, who represented Kogi State government.
