Nigeria Content Online

The Ekiti State government has revoked contracts awarded to three dam concessionaires by the last administration.

The General Manager
of the State Water Corporation, Julius Olofin, told the News Agency of
Nigeria in Ado-|Ekiti, said the job were awarded in 2008 for dams in
Ureje, Itapaji and Ero communities for the following concessionaires:
Kemeng Services Ltd, Batiments Techniques Ltd and Ero Power Company Ltd
respectively.

Under the
concession arrangement, the companies were responsible for water
production while the state water Corporation took care of the
distribution of water to customers.

Mr Olofin explained
that the contracts were terminated due to the failure of the companies
to produce water for distribution one month after the incumbent
governor; Kayode Fayemi assumed office. “It is true that the state
government has directed the three dam concessionaires to stop
production and leave the corporation premises” he said.

The state
government has directed the Water Corporation to commence the
production and distribution of water immediately. The Production
Manager of Kemeng services Ltd; Abiodun Fatoye, the concessionaire in
charge of Ureje dam confirmed the story. He said the directive to stop
production was communicated to the company on Tuesday morning by the
water corporation authorities.

Mr Fatoye said the
company had stopped production on December 2, 2010, due to the
inability of the state government to settle bills for three months due
to the removal of Segun Oni as the governor of the state by the Court
of Appeal.

He said the
government owed the concessionaires for September, October and
November, adding that the companies had commenced the process of
disengagement from the contracts. Visiting the premises of the state
Water Corporation at Ekute in Ado-Ekiti, officials of the corporation
and the concessionaires were seen taking inventory.

NAN