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.