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Federal Government Criticizes Construction Company Over Unfinished Road Despite N40bn Funding

Umahi has issued a seven-day ultimatum to RCC, warning that failure to remobilize would result in the termination of their contract

paulcraft by paulcraft
June 21, 2024
in National
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Senator David Umahi, the Minister of Works
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  • The federal government criticized RCC for failing to complete 1 kilometer of the 15-kilometer East-West Road despite N40 billion funds
  • Minister David Umahi issued a seven-day ultimatum to RCC, warning of contract termination if they fail to remobilize

The federal government has criticized Reynolds Construction Company (RCC) for failing to complete even 1 kilometer of the 15-kilometer East-West Road section from Eleme Junction to Onne Port Junction in Rivers State, despite receiving over N40 billion in mobilization funds.

Minister of Works, David Umahi, voiced his disappointment during an inspection tour of ongoing road projects in the South-South zone on Wednesday, according to a statement on the ministry’s website.

“We are very sad with the manner and behavior of this contractor, RCC. The federal government has paid over N40 billion on this project, and not even one kilometer has been completed,” Umahi stated.

The delay has been attributed to the ongoing importation of necessary machinery, an excuse the federal government finds unacceptable. Umahi emphasized that no requests for price variations from the contractor would be entertained, as the project does not justify any price adjustments.

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He also expressed concerns over the hardships faced by road users and reaffirmed the federal government’s commitment to securing interim funds for road maintenance until RCC resumes work on the site.

Umahi has issued a seven-day ultimatum to RCC, warning that failure to remobilize would result in the termination of their contract.

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