The Ongoing construction work On Lagos-Ibadan Expressway being constructed by Julius Berger and Reynolds Construction Company Nigeria Limited (RCC) has been suspended due to delay in payment of agreed contract fee for work that has been done.
Reynolds Construction Company Nigeria Limited (RCC) who handles the reconstruction and expansion works on section II from the Sagamu interchanged to Ibadan had addressed a letter to the Minister of Power, Works and Housing, Mr. Babatunde Fashola calling for his attention in order for the work to continue.
The Minister who confirmed that he received the letter from the Managing Director, RCC, Mr. M. Nakhla, which was dated June 2, 2017, stated, “In view of the irregular payment and the attendant cash flow problem, we shall be constrained to suspend further execution of work unless there is an appreciable improvement in the project’s cash flow and adequate funding arrangement is put in place for further works.”Also said that he received a similar letter on June 5, 2017 from Julius Berger, which handles Section 1 of the dual carriageway from Lagos to the Sagamu interchange.
The Julius Berger letter 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 financial 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 notified.”
Fashola said the letter was co-signed by the Division Manager, Julius Berger, Mr. W. Loesser; and the Commercial Division Manager, Mr. T. Meletschus.
On the way forward, the statement noted that lawmakers at the House of Representatives had pledged to support the minister and his ministry to succeed in the assignment of road construction and rehabilitation nationwide.
