*vows CNL won’t leave site until payment of compensation
By; BAYO AKAMO, Ibadan
The controversy over the termination of the first phase of Ibadan circular road contract by Governor Seyi Makinde took a new twist on Thursday as the firm handling the project ENL Consortium Ltd, demanded payment of N10.6billion as compensation from Oyo state government
Chairman, ENL Consortium Ltd, Prince Adesuyi Haastrup made this known in Ibadan while speaking with newsmen on the termination of the Ibadan circular road contract by the Governor Seyi Makinde led administration in 2019.
Prince Haastrup maintained that ENL Consortium Ltd leave no stone unturned in seeking justice at a London Arbitration Court should Oyo state government fails to pay the N10. 6 billion compensation.
The CNL Consortium Ltd Chairman while speaking further highlighted details of the compensation as N3.9 billion already expended on the project and N6.7 billion penalty being 10 per cent of the total contract sum in case of such termination.
Emphasizing that the terms of the Ibadan Circular road are clearly stated in the contract signed by both parties in 2017, Prince Haastrup stated that CNL Consortium would remain on the site until the state government meets the terms of the agreement which includes offsetting the N3.9 billion spent on the project and the N6.7 billion penalty for terminating the contract.
New Nigerian recalled that the contract was for a 32-kilometre road starting from the First Technical University on the Lagos-Ibadan expressway and terminating at Badeku village on the Ibadan- Ife expressway.
The contract was awarded by the administration of late Senator Abiola Ajimobi in 2007 at a sum of N67 billion on a Build Operate and Transfer (BOT) basis for 25 years.
Governor Makinde on assumption of office on May 2019 visited the project site late 2019 during which he directed the contractor to stop work due to what he called slow pace of work at the site
But on realising that Oyo state government did not commit any fund to the project, Governor Makinde asked the firm to continue with its work but with the condition that it must deliver in six months.
However, after one year of work on the project, Governor Makinde terminated the contract stressing that there were better firms that could deliver at the agreed length of time.
Meanwhile, Oyo State The government has already advertised the job with Prince Haastrup stressing that ENL Consortium would not leave the site until the government meets the terms of the agreement which includes offsetting the N3.9 billion spent on the project and the N6.7 billion penalty for terminating the contract.