07
Jun
Jun
DELTA STATE GOVERNOR TERMINATES ROAD CONTRACTS AWARDED UNDER OKOWA’S ADMINISTRATION
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CapitalTimesNews / 2 weeks
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- 2 min read
Delta State Governor Sheriff Oborevwori has terminated multiple road construction contracts awarded during the twilight of his predecessor and political godfather’s administration, Mr. Ifeanyi Okowa. The decision affects several ongoing and stalled road projects across the state, many of which were awarded in the final months of Okowa’s administration. According to Oborevwori, the contracts were terminated due to delays and drastic cost escalation caused by rising inflation and the ripple effects of the fuel subsidy removal policy announced in May 2023. Some of the affected projects include the construction of a road in Abayaragba, Ndokwa West, Moweh Street in Ekiugbo, and the Ughelli Patani Expressway. “We have approved the repudiation of a number of other projects with a view to enabling us to proceed with some of those jobs,” Oborevwori said. The governor explained that repudiating the contracts would allow for proper analysis of the contractor’s capacity, possible adjustments in the scope of work, and the actual condition of the road in question. State Commissioner for Works, Charles Aniagwu, attributed the repudiation to the significant changes in economic conditions, citing the example of a bag of cement that may have been priced at ₦3,000 when the contract was awarded but would cost more when the contractor mobilized. “If a contractor is unable to proceed due to these changes and we didn’t have time to formally review the contract, then the only option left is to repudiate and reassess based on current realities,” Aniagwu explained. The terminated contracts reportedly include multi-billion-naira road developments in Delta North, South, and Central senatorial zones. Oborevwori’s decision marks a significant political pivot, given his previous association with Okowa, his predecessor and political godfather. Oborevwori emphasized that repudiating a contract doesn’t necessarily mean termination but rather a necessary step to reevaluate the project’s feasibility. “If a job is awarded for reconstruction and overlay of an existing road, you must consider how much that road has further deteriorated since the initial assessment,” he said.
