HeadlineNews

Umahi Terminates Contract for Benin-Sapele-Warri Road Over Performance Concerns

Minister of Works, David Umahi, has ordered the termination of the contract awarded to Levant Construction Limited for the reconstruction of the Benin-Sapele-Warri Road. The decision, announced in Abuja, follows what the minister described as persistent non-performance by the contractor.

The project, part of the Federal Government’s Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, was divided into three sections, with Levant handling one of them. Umahi noted that despite several interventions, including written warnings and a final termination notice, the company failed to resume work or address its contractual obligations.

“We have three sections there, one of which was awarded to Levant. Unfortunately, Levant has not lived up to expectations. We even had to intervene and plead with the Edo State Governor, Monday Okpebholo, to take over the worst sections,” Umahi stated.

According to him, the government awarded 23 kilometers of the most critical portion of the route to another firm at a cost of ₦35 billion. While that work is progressing steadily, Levant allegedly abandoned its portion of the project despite repeated warnings.

“When a termination notice is issued, the contractor has 14 days to return to site and address the lapses. Levant did not respond or remobilize,” Umahi said.

He directed the Permanent Secretary of the Ministry to formally terminate the contract, issue a request for joint measurement of work done, and notify the company’s bank to initiate repayment of the Advance Payment Guarantee (APG). If the repayment is not made, he said, the case would be referred to the Economic and Financial Crimes Commission (EFCC) for further action.

Meanwhile, the minister expressed satisfaction with the performance and cooperation of SKECC Nigeria Ltd and GELD Construction Ltd, who are handling other sections of the same road. He urged them to accelerate progress on their respective parts to meet delivery timelines.

Share this:

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *