Thursday, November 22, 2012

Lagos/Ibadan Expressway: We’ll meet in court, FG tells Babalakin •Labour, Oyo PDP praise FG on revocation of Bi-Courtney’s Lagos/Ibadan road contract


AGAINST the backdrop of the intention of  Bi-Courtney Consortium to mount a legal challenge to the decision to terminate the concession agreement on the Lagos-Ibadan Expressway, the Federal Government has indicated its readiness to defend the action in court.
Minister of Works, Mike Onolememen, told State House correspondents during press briefing after the weekly meeting of the Federal Executive Council (FEC) in Abuja, on Wednesday, that the Federal Government was prepared for any legal battle.
He said government observed the rules of disengagement as stated in the agreement, having repeatedly written to Bi-Courtney to remedy the situation to no avail.
It will be recalled that the Federal Government, on Monday, announced the termination of the agreement it entered into with Bi-Courtney Consortium in May 2009.
It, thereafter, awarded contracts to salvage the failed portions of the road to both Julius Berger Nigeria Plc and Reynolds Construction Company (RCC) Nigeria Limited.
While Julius Berger will handle Lagos to Shagamu interchange, RCC Nigeria Limited will be responsible for Shagamu to Ibadan.
The minister affirmed that the termination of the concession was as a result of the serial breaches of the concession agreement by Bi-Courtney Consortium, especially the failure of the company to reach financial close as provided for in the agreement.
On doubts over RCC’s capability to execute the job, Onolememen said “RCC is one of the contractors in the category that we are comfortable with. It is RCC that did most of the very important roads in this country that have continued to provide easy movement for people.”
Meanwhile, ORGANISED labour under the aegis of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), have saluted the Federal Government on the termination of the concession agreement it entered with Bi-Courtney Limited on the Lagos-Ibadan Expressway.
    According to them, it is a radical move to fight corruption and deal with non-performance on the part of the contracting companies which have abandoned government projects in Nigeria
Minister of Works, Mr Mike Onolememen, on Monday, disclosed that  the Federal Government had terminated the concession agreement it entered with Bi-Courtney Limited on the Lagos-Ibadan Expressway as a result of serial breach of the terms of the deal by Bi-Courtney.
Speaking on labour’s support for the decision, NLC President, Comrade Abdulwaheed Omar, said “we see the decision of the Federal Government as a radical change to fight corruption, as well as to ensure that contractors that have abandoned their projects return to sites to complete them.
“The congress expects the Federal Government not stop at the Lagos-Ibadan Expressway alone, but review all other abandoned projects in the country and bring the contractors to book.”
In the same vein, the Oyo State chapter of the Peoples Democratic Party (PDP) has commended the Federal Government’s decision on the termination of its agreement with Bi-Courtney.
This was contained in a statement issued in Ibadan, by the state PDP stakeholders forum, signed by its chairman and former speaker of the state house of assembly, Right Honourable Asimiyu Alarape, a copy of which was made available to newsmen on Wednesday.

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