Construction firm to resume work on major expressway in Nigeria

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Construction firm to resume work on major expressway in Nigeria

Construction work on the Lagos- Shagamu expressway in Nigeria is yet to resume. The construction works is expected to resume following a suspension by the project’s contractors Julius Berger Nigeria (JBN), Nigeria based Construction Company.

The US$839m project had been awarded to Julius Berger and Reynolds Construction Company by the Nigeria former President Goodluck Jonathan in 2013, to repair Section 1 of the highway which spans Lagos to the Sagamu Interchange and Section II which begins from Sagamu Interchange to Ibadan. The project was initially scheduled for completion within the period of 48 months

Speaking during the Investors Relation Forum in Lagos, George Marks, the company’s Acting Managing Director revealed that the company will return to the project’s site after being assured of adequate commitment with the amount allocated in the 2016 budget which President Muhammadu Buhari has already signed.

Beside the Section 1 of the Lagos-Sagamu-Ibadan Expressway project suspension, JBN suspended other several projects in its responsibility across the country due to lack of payment from the federal government.

According to Marks, JBN needed to suspend the project’s work in order for the company not to run into heavy debt crisis likely to threaten the future cost prime structure of the company.

“As a consequence, client inability to meet contractual obligations in a timely manner substantially impacted the industry and forced a reduction to low working load of 30 per cent, and a downsize of staff from 18,000 to 11,000,” he added.

However, due to delayed payment on all levels the Federation of Construction Industry (FOCI) has laid off 33,000 workers on public construction sites with an indirect consequence on 130, 000 others.

Julius Berger Nigeria Plc (Julius Berger) is a leading construction company offering integrated solutions and related services. The company specializes in executing complex works that require the highest level of technical expertise and Nigeria-specific knowhow construction methods and technologies to ensure that quality and innovation are prioritized for the benefit of clients.

 

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