Abuja - The Federal Government on Monday announced the termination of the concession of the Lagos-Ibadan Expressway granted to Bi-Courtney Consortium in May 2009.
The Minister of Works, Mr Mike Onolememen, announced the termination of the contract while briefing State House Correspondents in Abuja.
He said the termination of the contract followed the failure of the consortium to reach ``financial close’’ as provided for in the concession agreement.
``The termination of the concession is consequent on the serial breaches 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,’’ he said
According to him, due to the senseless carnages on this important expressway which is part of Arterial Route A1, the Federal Government had also decided to embark on the emergency reconstruction of the expressway.
He said the ministry had engaged the services of Julius Berger Plc., and RCC Nigeria Limited to commence work immediately on the reconstruction of the expressway.
``While Julius Berger would 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 Nigerians that while it will continue to uphold the sanctity of contracts entered into, it will not shy away from implementing provisions of the contract agreement dealing with non-performance on the part of the contracting party.’’
President Goodluck Jonathan had on Nov. 18 said during a Presidential Media chat that his administration would soon take a definite decision on the concessionary agreement with the Consortium over the Lagos-Ibadan Expressway contract.
Jonathan noted that there were signs that the concessionaire was not capable of handling the project, noting that the road, being the busiest in the country, needed urgent government attention.
The News Agency of Nigeria (NAN) reports that the contract, valued at N89.53 billion for a period of 25 years, was announced by former minister of Information, Prof. Dora Akunyili in 2009.