Facts have emerged as to why the ongoing rehabilitation work on the Lagos-Ibadan Expressway has been stalled.
Checks by our reporter showed that the delay in the completion of the rehabilitation work arose from the Federal Government’s decision to ignore an offer of arbitration by Bi-Courtney Highway Services Ltd.
So controversy continues to trail the N167billion project, including an ongoing court case. Findings revealed that Bi-Courtney had expressed its desire for arbitration in a January 25, 2013 letter to the immediate-past minister of Works Mike Onelememen.
But three years after the company offered to settle out of court, the Federal Government is yet to respond.
The construction giant also went ahead to name a three-man team to represent it at the arbitration panel, but the government has not provided its representatives.
Bi-Courtney in the letter signed by Chief T.K. Akinbami, stated: “We refer to the letter dated, 19th November, 2012, wherein the concession granted to our Consortium vide your letter of 8th May 2009, was purportedly terminated pursuant to Article 16.1 of the Concession Agreement (“Agreement”) for failure to remedy the alleged breaches complained of in your letter dated, 28th August, 2012.
“Please note that the Consortium disputes the purported termination of the concession. We refer to our letter dated 26th September 2012 (copy attached) wherein we responded seriatim to the issues raised in your letter dated 28th August 2012 and demonstrated clearly that the ministry’s purported notice of non-compliance with the agreement is premature and incurably invalid. We also emphasized the need for the Grantor to comply with the Agreement before it alleges non-compliance by another party.
“Notwithstanding the above position, as committed patriots to the development of Nigeria, we continued with the project and recommended palliative works of 5th August 2012. Subsequently, we engaged a major construction company to commence actual reconstruction works on 23rd September, 2012, and the company was active on site until our receipt of the letter purportedly terminating the Concession.”
It insisted that a dispute had arisen which should have been resolved in accordance with dispute resolution mechanism provided under Article 21 of the agreement prior to the invocation of any termination clause.
“In the circumstance, we demand that the Dispute Resolution Board (“the board”) be set up forthwith, to determine the propriety or otherwise of your action under the agreement. We hereby appoint the underlisted persons.”
It listed three persons, Mr. Justice G.A. Oguntade, retired Justice of the Supreme Court of Nigeria; Prince Adesupo Adetona, retired senior partner of Deloitte; and Engineer B.G Giwa, former acting director, Federal Highways, as our nominees to the Board and called on government to nominate its representatives within 14 days.
Minister of Works Babatunde Fashola last week alluded to the challenges being faced by the Federal government on the project.
He said: “The Lagos-Ibadan Expressway is a story of what investors don’t like. The FGN granted a concession to a private company (Company A) and later withdrew and cancelled it. The FGN then entered into a construction and financing agreement with another company (Company B). Company A went to court and got an order to cancel the financing agreement made with Company B.
“As things stand, work has been stopped on the construction of the road. The construction companies cannot get financing because of the court order, so they have laid off about 2,000 workers, in an economy that has so much to do and needs to create work.
“These 2 (two) companies are Nigerian companies investing in Nigeria, which is a positive sign because the local investors are the most important to any economy.”
-Leadership