Federal Government Threatens Contract Termination for Julius Berger and CCECC Over Calabar Itu Road Project
The Federal Government has issued a stern warning to Julius Berger and China Civil Engineering Construction Corporation (CCECC) regarding their contracts for the Calabar Itu Road project. Minister of Works, David Umahi, has mandated the immediate mobilization of both construction companies to their respective project sites within one week or face potential contract termination.
During a Stakeholders’ Engagement in Uyo on Saturday, Umahi emphasized the urgency of reactivating the stalled projects. He pointed out that President Bola Ahmed Tinubu has allocated sufficient funds for the Lagos-Calabar Coastal Highway projects, and any further delays would not be tolerated.
“We use this opportunity to warn CCECC,” Umahi stated. “Out of 35 kilometres, they have only completed 2.5 kilometres of double carriageway and 4.5 kilometres of single carriageway. That is very terrible. When you speak to them, they cite compensation issues.”
Umahi noted that Governor Pastor Umo Eno has resolved the compensation matters, leaving no excuses for further delays. He issued a directive for CCECC to mobilize to at least three sections of the road immediately. Julius Berger received a similar order to return to the project site by the end of the coming week.
“Mr. President has provided enough funding for the project. By the end of this coming week, if Julius Berger fails to remobilize to the site, and CCECC fails to mobilize in at least three sections, their contracts will be terminated,” Umahi warned.
He highlighted the dire state of the roads, particularly the Akwa Ibom to Cross River route through Itu and Udoakpan Ekpo. “The worst of the roads in the entire South-South remains this Akwa Ibom to Cross River through Itu and Udoakpan Ekpo, and also the section that is being done by RCC.”
Umahi criticized RCC, noting that the company had collected over N40 billion for the project but had made little progress. He revealed that the government inherited a contract worth N156 billion from the previous administration and has maintained the price despite reservations.
“We have kept the price even though we don’t believe in it, but since it has been awarded and signed, we have been pressing them to change their ways. By the end of next week, our 14-day notice of termination will elapse, and we will terminate the project. We will then assign it to those who have expertise in concrete laying to complete the roads using concrete.”
The Federal Government’s firm stance underscores its commitment to infrastructure development and its unwillingness to tolerate delays that hinder progress.
