Justice Ayo Oyebiyi of Osun State High Court today Tuesday 17 of September, 2024 dissmissed the application brought to the Court by Henan Water Conservancy Engineering Bureau Limited and Sagittarius Nigeria Limited the contractors handing Ilesha water project.
The claimants filed a suit against Osun State government for unlawful termination of the contract in the suit number HOS/M.205/2021 through their lawyer kunle Adegoke (SAN) and demanded for 500 million US Dollars as compensation for unlawful termination of the contact.
It would be recalled that in the year 2016 Osun State government decided to execute Ilesha Water Supply and Sanitation Project which was funded by a loan from the Islamic Development Bank.
The project has four components,
Construction of water transmission main, Construction of 3 numbers of 10,000 cum concrete reservoirs, distribution of networks and design, build and operation of water treatment plant.
Furthermore, Islamic Development Bank appointed Mahab Ghodss Consult Engineering as Consultant to Supervise the project and in 16 July, 2019 site was handed over to the Contractor.
Counsel from the Ministry of Justice representing Osun State Government Barrister Tijani Adekilekun Esq. told the Court that the contract was agreed to be carried out within 24 months (two years) and the time had already began to run from the date of handling over of project site to the Contractor.
The claimants failed to ask at 8 of September, to carry out the first stage of the contract which is the of acceptable design for the Water treatment plant also the already approved design for staff quarters building plan layout were not constructed.
Adekilekun stated further that when the problem of delay of implementation of the contract persisted due to the inability of the contractor to produce approvable design the contractor was issued a notice of termination which was rescinded at the intervention of the former Governor Adegboye Oyetola.
After expiration of additional 12 months the claimants unable to deliver approved design by the consultant, on 16 of August, 2022 Ademola Adeleke led administration terminate the contract.
Kunle Adegoke (SAN) earlier told the Court seek an Order of interlocutory Injunction restraining to restrain Osun State government from execution of project by re – awarding the contract to another contractor.
Adegoke further asked the Court to order Osun State government to pay the sum of ($500,000,000.00) Five Hundred Million Dollars for unlawful termination and reinstatement.
In his judgement Ayo Oyebiyi dissmissed the application/suit filed by the claimants Hannah/Sagittarius.
Justice Oyebiyi pronounced that termination of the contract by Osun State government on 14th Day of December, 2021 is in order also direct the government to award the contract to another qualify firm.
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