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The government said they terminated the contract 'as a result of serial breaching of the terms' of the deal by Bi-Courtney. The Federal Executive Council (FEC) in May 2009 awarded the concessionaire contract for the expressway for 25 years to Bi-Courtney, which was expected to upgrade the highway with over N80 billion and recoup the investment by tolling the road, but they couldn't deliver.
The contract has been awarded to both Julius Berger Nigeria Plc and R.C.C Nigeria Limited, and they have been directed to commence work immediately on the road.
A press statement from Minister of Works, Mike Onolememen after the cut...
"The Federal Government today, terminated the concession of the Lagos-Ibadan expressway granted to Bi-Courtney Consortium on 8th May, 2009. The termination of the concession agreement by Bi-Courtney consortium and especially the failure of the company to reach financial close as provided for in the agreement.
Due
to the senseless carnages on this important expressway which is part of
Arterial Route A1, the Federal Government has also decided to embark on
the emergency reconstruction of the expressway.
Consequently,
the Federal ministry of Works has engaged the services of Julius Berger
Plc and R.C.C Nigeria Limited to commence work immediately on the
reconstruction of the expressway.
While
Julius Berger would handle handle section 1: from Lagos to Shagamu
interchange, RCC Nigeria Limited will be responsible for section II:
from Shagamu to Ibadan.
The
Federal Government wishes to assure that while it will continue to
uphold the sanctity of contracts entered into by the Federal Government,
it will not shy away from implementing provisions of the contract
agreement dealing with non-performance on the part of the contracting
party.
The legal
implications of this termination have been carefully considered by both
the Federal Ministry of Works and indeed the Federal Government. If you
recall, we have been on this issue for quiet sometime now and we have
meticulously followed the concession agreement, the provision of
relevant clauses of the agreement.
We
have complied fully with the provisions of this agreement. We have had
cause even in the past to write the concessionaire to detail the breaches
which it had committed in this agreement in this particular transaction
and we have also followed the minimum and maximum number of days the
contractor was expected to remedy the situation but failing which the
Federal Government had no alternative but to take this course of
action.
For
your information, under this concession, the construction period is
supposed to last for four years and the four years will come to a close
in about six months time and right now there is nothing on ground to
suggest that the company is capable.
31 comments:
Hmmmmm...well de knw better.. ‾̴̴͡͡‾̴̴͡͡
This pics above make me worried,is dis hw they gonna do the road wit all motors headin d same direction, Nawaoo @Richards
Good riddance 2 bad rubbish. Abeg dat road don too suck blood, atleast someone has risen up 2 make right d wrong.
hallelujah...
God help nigeria...
Better as its Julius Berger o, at least that's a name that's trusted in that industry, R.C.C is good too. I am sure that Bi-Courtney abi wetin sef is a birth child of all those schemes that corrupt politicians give their cronies big contracts to just eat the money and not do anything worthy of the project. I hope all that would come to an end in Nigeria soon.
Next: East-West road, Benin-Ore expressway. I love decicive actions like this!
Nice & commendable move & by the FG. Good to know they can still put the good side of their brain into good use
at last...obasanjo and babalakin are edged out by the govt. adios
To look like this? dey wan still am?
But has bi-courtney refunded the 80 billion?
Discharge usually results from performance but can occur in other ways:
(1) the occurrence or failure of a condition on which a contract is based,
(2) breach of the contract,
(3) agreement of the parties, and
(4) operation of law.
About time. It's been long overdue.
@prince charming and damilola Ajayi its called a concession agreement, PPP public private partnership, a dime isn't given to BCL, he uses his own funds or sources for the fund and repairs the road which will last for 25 years for him to recover his capital and profit. It's now the govt that owes BCL for breaching the contract and will pay damages for works already done.
Thank God. Finally! It is sad that it took the FG so long to cancel the concession to Bicourtney who have shown that they are incapable of fixing the road.
@Damilola Ajayi - Which 80billion? This project was a PPP and the concession was for Bicourtney to reconstruct the road with its own financing and then build tolls and operate it for 25years to recoup its investments. Apart from being technically incompetent at road construction, bicourtney also found it hard raising finance for the project.
Have they refunded it? That's the question
Praise God somebody. Those are the names (Berger & RCC ) we know. I am sure they will perform. Was on that road yesterday and wondering when is work going to commence. Bicourtney should go face the likes of MMA 2 construction.
Ooni of ife to the best of my knowledge is d chairman of RCC..they get most of the western contracts which accounts for majority of the bad road network.wait and see d diff btw the lagos-sagamu stretch that will be done by JB and the sagamu-ibadan stretch that will be done by RCC, then u wud see reason why JB is doing 95percent of all d roads in Abuja.Babalakin failed cos Oceanic has been acquired and the new entity called Ecobank don't do risky and sticky facilities.
finally ....what needed to be done has been done....check out yelnatsfashion.blogspot.com
@Anonymous,
Except for mischief, if you look closely on the left of the picture, there is a second lane coming in the opposite direction, it is definitely not a one direction road. You may choose to be cynical on other things please.
RCC no sabi work o... No be dem do Ibadan - Ife road? How long that road take before e begin scatter?
The multi lanes with all cars going the same direction is just One of the major two lanes, take a look at the top left corner of the pic, you would see the other lane with cars going the other direction
Best news of the day. But Bi-Courtney worked sha. They have been grading road shoulders consistently. LOL.
Lemme explain further to mek dat clear... It gon be 8 lanes each...
This is good news.... Let it be implemented fast. We dnt want daku-daji contractors like d Bi-Courtney, they just came demolished structures and didn't shingbain(anything)
You should learn to read and understand
Y can't d fed. govt give d road to JB alone or JB wiv anoda trusted construction company lyk CCECC. Na wa for all this fed. Govt. Ppl sef oooo
Somebody shout Hallelujah!!!
Na wah o!!! How u take pass exam? That is if u even went to school *eyes rolling* two pple have explained, yet u're asking unintelligent questions! Even a 5yr old can read this piece and understand it!!!
According to some gist, I heard he had a clause in the agreement that if terminated, the FG gets to pay his company 5 times the bill for the contract.
Is this what has gone done? Or the FG finally woke up to the fact that it's citizens shouldn't continually be sacrificed on this stretch of road via accidents
Shie plsssssssssss don't give RCC ooooo minister if u dey read lIB blog pls ooooo dem kn sabi work at all ife road is a a mess now just hw many yrs pls give jB everytin dey are more dan capable mbok
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