Contractors working on the Lagos Ibadan Expressway have packed up their tools over the Federal Government’s delay in paying an outstanding N8.94 billion debt.
In a letter to the minister of works, power and housing, Babatunde Fashola, on June 2, 2017, Reynolds Construction Company Nigeria Limited said the government should pay the debt so that it can resume work on the project.
The company reminded the minister that the window allowed for the payment of the N7.83 billion approved certificates of work done on the project has passed the 28 days window allowed.
“In addition, there is another Certificate (No.19) of N1,108 334, 258 under processing. Thus, making a total of N8, 937,611,552. The mounting debt profile on this project is worrisome.”
The letter signed by the company’s Managing Director, M.Nakhla, explained that though the company was committed to the completion of the project, funding it has become a challenge. .
. “In view of the dire situation, 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. This painful decision is bound to delay the scheduled completion of the project, in addition to the inherent cost implication. .
. “This letter is, therefore, a notice of our intention to suspend further execution of the project, pursuant to Clause 68(8) of the Conditions of Contract. In that unfortunate event, we shall require payment of the outstanding debt as well as full coverage of our attendant expenses and losses before the resumption of work. A corresponding extension of time shall also become imperative, pursuant to Clause 44 of the CC,” the letter obtained by the Punch on Friday revealed.
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