FG Terminates Benin – Sapele – Warri Road Contract.
The Federal Government of Nigeria has terminated the contract for the reconstruction of the Benin-Sapele-Warri Road (Section 1: Benin-Imasabor) due to non-performance by the contractor, Levant Construction Ltd. Minister of Works, David Umahi, announced the termination after a meeting with the chief executives of GELD Construction Ltd and SKECC Nigeria Ltd in Abuja.
By Rhalialt Arhuoizah
Reasons for Termination:
– Non-performance: Levant Construction Ltd failed to meet expectations despite repeated warnings and a final termination notice.
– Abandonment of site: The contractor abandoned the site, leaving critical areas unattended.
– Failure to remobilize: Levant didn’t respond to the termination notice, prompting the ministry to direct the Permanent Secretary to finalize the contract termination
Next Steps:
– Joint measurement: A joint measurement will be conducted to assess completed works.
– Repayment of Advance Payment Guarantee (APG): The ministry will request Levant’s bank to initiate repayment of the APG, with potential escalation to the Economic and Financial Crimes Commission (EFCC) if not complied with.
Other Contractors’ Progress:
– GELD Construction Ltd: Agreed to resume work on their section after a project review.
– SKECC Nigeria Ltd: Will remedy the one kilometer of milled asphalt despite exhausting their NNPC budget allocation.
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