Reynolds Construction Company, assigned the reconstruction and expansion of the Lagos-Ibadan dual carriageway, has reportedly suspended work on the project due to an outstanding debt of N8.94bn.
According to PUNCH, the company in a letter dated June 2 called the attention of Babatunde Fashola, minister of works, power and housing, to the financial constraints of the project and pleaded for his intervention.
The letter, signed by the firm’s managing director, simply identified as M. Nakhla, stated that RCC was committed to the successful completion of the project, but maintained that funding was a challenge.
The letter is said to have been received and acknowledged by the office of the minister on June 5.
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“In view of the dire situation, we shall be constrained to suspend further execution of work unless there is an appreciable improvement in the project’s cash flow and adequate funding arrangement is put in place for further works,” the letter read.
“This painful decision is bound to delay the scheduled completion of the project, in addition to the inherent cost implication.
“This letter is, therefore, a notice of our intention to suspend further execution of the project, pursuant to Clause 68(8) of the Conditions of Contract. In that unfortunate event, we shall require payment of the outstanding debt as well as full coverage of our attendant expenses and losses before the resumption of work.
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“A corresponding extension of time shall also become imperative, pursuant to Clause 44 of the CC.”
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