Business
N’Delta: Unpaid Debts Threaten N230bn Projects
The non-payment of outstanding debts is threatening high priority road projects worth N230bn in Niger Delta, as three major construction companies handling the projects have threatened to pull out.
The construction companies-Setraco Nigeria Limited, Reynolds construction company-have threatened to abandon the road projects due to non-payment of outstanding debts by the Federal Government.
Hon. Olaka Nwogu, chairman House committee in N’Delta, revealed this in Abuja at the weekend, explaining that the contractors are requesting for supplementary budget of N28b to enable them complete the project on time.
For the project, Reynolds construction company (RCC) was paid N5,684,881,518.18 out of N35.66 for the dualisation of the East-West Road (section III) Port Harcourt from Eleme Junction to Eket in Akwa Ibom State.
Selraco Nigeria Limited was given a contact of N74,806, 197,097.37 for the dualisation of the East-West Road from Port Harcourt Ahoada and Kaima-Ahoada as well as dualisation of East West Road from Warri-Kaiama (section i and ii) following the decision of julious Berger to quit the Niger- Delta region.
On its own part, Gitto construction company got a contract of N26n for the dualisation of East-west Road (Section IV) from Eket-oron road, Akwa Ibom State.
According to Nwogu, the projects were parts of the priority projects embarked in by Federal Government to stem the lingering crisis in the Niger Delta.
Julius Berger construction company recently terminated a contract of N11bn due to insecurity in the region.
Nwogu revealed that Julius Berger refunded N66, out of the N11bn, as against N8bn, being outstanding money for the work executed.
His words: “Julius Berger left the project after which it was re-awarded to Setraco. Julius Berger sent a letter that they have spent N3b out of the N11bn for the Port Harcourt, Section, 1, East-West Road, but we later found out that the company only returned N66. so they have a refund N2b to pay.
So we want to find out why the disparity.”
The Minister of Niger Delta Affairs, Ufot Ekaette, and minister of state for Niger Delta Affairs, Godsday Orubebe, were not present at the interactive session with the construction companies to shed more light on the issue.
However, another meeting has been scheduled with the Minister for Thursday, July 23, to find out the reason for the delay in the release of the fund to the construction companies.