Failed Contract: Nigerian Government Punishes Electric Company: Blacklists It, Bars Its Directors From Seeking Further Contracts

Nigeria’s Federal Government has vented its anger on Messrs Techno electric and engineering company for allegedly abandoning a contract on electricity in Ebonyi state after collecting 15 percent of the total contract sum. The government has not only cancelled the contract and re-awarded it to another company, but has asked the erring company to refund the 15 percent it collected as mobilization fee within a short period.
The government has also blacklisted the company and barred it and its directors from canvassing for contracts anywhere in Nigeria.
Breifing newsmen today shortly after the weekly Federal Executive Council (FEC) meeting at the Presidential Villa, Abuja, the minister of state for Power, Mohammed Wakil said that Messrs Techno electric and engineering company, had on the 1st of December 2010 collected a 15 percent mobilization fee from the federal government and later abandoned the project.
The minister said that the failed contract which is for the Engineering Design, Manufacture, Supply, Installation, Testing and Commissioning of 2X60MVA, 132/33KV at Amasiri and 2X132KV Line Bays Extension at Abakaliki for the Transmission Company of Nigeria has been re-awarded to Messrs North China Power Engineering limited and NCEP (Nig) Limited at the rate of $5,835,368.47.
The amount, he said, is payable at the prevailing exchange rate at the time of payment, plus N505,788,083.58, inclusive of N67,211,298.58 for five percent contingency with a completion period of 24 months.
“The project is designed to boost power supply to Ebonyi state and Parts of Cross River and to enhance the socio economic development of the state. The funds are available under the Eurobond loan, 2014 appropriation and in the unutilized letter of credit arlier, established for the terminated project to commence implementation.”
He said that the Council alao approved the award of contract for the design and construction of four 60 TON Bollard Pull Marine Tug Boats in favour of Messrs Depasa Marine International (Nigeria) limited in the sum of €42,968,864.70 ( fourty two million, nine hundred and aixty eight thousand, eight hundred and sixty four euro, seventy cents), which is equivalent of N8,778,423,042.28 (eight billion, seven hundred and seventy eight million, four hundred and twenty three thousand, fourty two Naira and twenty eight kobo), inclusive of all taxes with a completion period of 24 months.
The poroject is expected to generate thousands of job opportunities for both professionals and non professionals during its execution and about 112 direct and indirect job opportunities when in fully operation.

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