The Federal Government has terminated the contract awarded to Levant Construction Ltd for the reconstruction of Section 1 (Benin–Imasabor) of the Benin-Sapele-Warri Road due to project abandonment and non-performance.
The contract, awarded under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, was revoked by the Minister of Works, Sen. David Umahi, after the contractor failed to respond to warnings and a final termination notice.
According to a statement from the Ministry, the government had to involve the Edo State Government to rehabilitate a 23-kilometre stretch of the road valued at N35 billion, after Levant abandoned its section. While the Edo-led intervention progressed, Levant vacated the site, prompting the termination.
“The Honourable Minister of Works,His Excellency, Sen. Engr. Nweze David Umahi CON has ordered the termination of the contract with Levant Construction Ltd on the reconstruction of Benin-Sapele-Warri Road (Section 1: Benin – Imasabor) being executed under Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, due to non-performance,” the statement read in part.
It further quoted Umahi as saying, “We have three sections there. We have the Levant section. Unfortunately, Levant has not lived up to expectations. We even had to intervene and beg the Governor of Edo State to please get the worst sections of that route done. We divided the worst sections into two and told Levant to concentrate on one part. While the Governor of Edo State intervened, which I think is about 23 kilometers for N35 billion, and that section the Governor of Edo State intervened is ongoing very well, Levant has since left the site.”
Umahi said the Permanent Secretary had been directed to conclude the contract termination, carry out a joint measurement with the company, and notify Levant’s bank to recover the advance payment guarantee (APG), warning that non-compliance could result in referral to the EFCC.
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The Minister of Works expressed satisfaction with commitments from SKECC Nigeria Ltd and Geld Construction Ltd to continue work on their sections of the Benin-Sapele-Warri Road.
- Geld Construction agreed to return to site and accepted a contract review to reflect rising costs, including asphalt price increases from N9,000 to N30,000 per square metre. The firm is also handling the Lokoja-Abuja Road, which will undergo a similar review, and the 34-kilometre Itokim–Ikorodu Road.
- SKECC Nigeria Ltd was directed to resume and complete one kilometre of already milled road, despite its NNPC tax credit allocation being exhausted.
Umahi also commended the Governors of Edo and Delta States for their interventions, highlighting Delta State’s delivery of three flyovers and commitment to a 10-kilometre stretch of reinforced concrete pavement.
