Julius Berger suspends work on Lagos-Ibadan Expressway
Julius Berger Nigeria Plc has suspended work on the Lagos-Ibadan Expressway due to delays in the payment of agreed contract fees for work already done. The Federal Ministry of Power, Works and Housing confirmed this on Sunday.
Fashola, in a statement issued by his Special Adviser on Communications, Mr. Hakeem Bello, on Sunday, stated that Messrs Julius Berger and RCC had given notice of suspension of work on the road.
The minister said the contractors complained that the delays in the payment of agreed contract fees were affecting the pace of work and stopping their chances of meeting the completion deadline.
Fashola said 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.”
The minister said he also 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.
The statement noted that lawmakers at the House of Representatives had pledged support to the minister as well as the ministry in the successful construction and rehabilitation of roads nationwide.