The Government of Oyo State has approved the award of the contract for the construction of the 110km Ibadan Circular Road to a new concessionaire named Messrs SEL-Vydra Consortium, at the cost of N138.2 billion.
This is despite threat by Messrs ENL Consortium to go to court if the contract is terminated.
ENL Consortium Ltd had last month demanded N10 billion compensation from the Oyo State government.
This newspaper had reported how Governor Seyi Makinde terminated the contract for an alleged delay in delivering the road.
But the firm later released details of the liability the government must clear to avoid being dragged before a London arbitration court.
Chairman of the firm, Prince Adesuyi Haastrup, in an interview with reporters in Ibadan, the state capital, put the total liability to the state government at N10.6 billion.
However, the new contract, which is to be executed on a Build, Operate and Transfer concession arrangement, is also classified as a User-Pays toll road.
The new contract, according to the Makinde administration, followed the expiration of the earlier contract for the construction of the 32 km stretch granted to Messrs ENL Consortium by the immediate past government in the State.
The Makinde administration has, however, approved a joint evaluation of the work done by ENL on the segment awarded to it in 2017.
The immediate past government had awarded the 32-kilometre portion of the road to ENL at the cost of N67 billion.
The portion awarded to ENL at the cost of N67bn represents only a third of the entire 110km stretch of the all-important road now awarded at the cost of N138.2bn.
A statement by Mr. Taiwo Adisa, the Chief Press Secretary to Governor ‘Seyi Makinde, confirmed that the award of the contract was one of the last assignments undertaken by the State Executive Council, which was dissolved shortly after its meeting of Tuesday, June 29, 2021.
The statement further indicated that the Ibadan Circular Road encircles the Ibadan urban area, providing the critical link between different parts of the city and the new Central Business District initiated by Governor Makinde.
While the state government will contribute N25 billion and own 20 per cent equity in the project, Messrs SEL-Vydra Consortium will contribute the sum of N113.2 billion and own 80 per cent.
