JUST IN: FG terminates Julius Berger’s Abuja-Kaduna road contract
The Federal Government, through the Ministry of Works, has directed Julius Berger, the contractor handling Section One, the rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, to evacuate the project site.
This followed a 14-day final termination notice issued to the company on Monday, dismissing any possibility of further negotiations.
It said the termination was based on non-compliance with the reviewed cost, scope and terms, stoppage of work and refusal to remobilise to the site as directed by the ministry.
It noted that negotiations had been ongoing for several months without any significant progress.
A statement by the Director, Press and Public Relations, Mohammed Ahmed, disclosed this information on Monday in Abuja, stressing that the decision was reached during a management meeting of the ministry at its headquarters.
Recall that the Works Ministry has in the last 13 months been in constant talks with the company in order to reach an agreeable position on the said alignment but to no avail.
The latest development follows an earlier threat by the minister to revoke the contract which was awarded to the company in 2018 when former President Muhammadu Buhari was in power.
While the Kaduna-Zaria section has been completed and the Zaria-Kano section is almost done, the Abuja-Kaduna section has recorded 27 per cent progress in 6 years.
At an event penultimate week, Umahi accused Julius Berger of playing politics with the highway to make the current administration look bad.
Despite these efforts, an agreement was not reached between both parties, with the construction company not attending the scheduled meeting on Monday.
The statement said, “Based on non-compliance with reviewed cost, scope and terms, stoppage of work and refusal to remobilise to site, as directed, the Federal Ministry of Works has issued a 14-day Notice of Termination to Messrs Julius Berger Plc for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna and Kano States, Contract No. 6350, Section I (Abuja-Kaduna), today, 4th November, 2024.
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“Nigerians may wish to know that the contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway, which was divided into three sections, was awarded to the company on 20th December 2017 and flagged off by the former Minister of Power, Works and Housing, Babatunde Fashola, at an initial sum of N155.75bn on 18th June 2018. Sections II (Kaduna-Zaria) and III (Zaria-Kano) were partially completed and handed over during the twilight of the administration of former President Muhammadu Buhari, GCFR.
“Since then it has been one variation and augmentation or the other, and finally, the present Minister of Works directed for the redesigning and re-scoping of Section I of the contract.
“The alignment was divided into two, with one phase redesigned to be on continuously reinforced concrete pavement, while the remaining with asphaltic pavement. Approval for Section I, Phase 1, for a length of 38 (thirty-eight) kilometres on the concrete pavement was given to Messrs Dangote Industries (Nig.) Ltd., while the remaining 127 (one hundred and twenty-seven) kilometres remained with the substantive contractor.
“Phase 1 was flagged off on 17th October 2024, with a 14-month completion period.”
Mohammed further explained that a request to rescope the project was approved by the Federal Executive Council, but the contract’s terms were not agreed upon by the contractor.
He added, “Due to the stalemate of the contract and, most importantly, the desire of President Bola Tinubu, as encapsulated in the Renewed Hope Agenda infrastructure initiative, to see to the completion of this laudable project and also to alleviate the sufferings of Nigerians plying the road, the Ministry re-scoped it and got the approval of the Federal Executive Council.
“The award for the Re-scoping and Downward Review of Contract for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna and Kano States, Contract No.6350, Section I (Abuja-Kaduna) in favour of Messrs Julius Berger Plc from the sum of N797.26bn to N740.79bn was granted by FEC on 23rd September 2024 and conveyed to the company on 3rd October 2024.
“Due to the socio-economic importance of the road as a vital artery connecting Abuja and the FCT to the North, the Ministry conveyed the approval for a final offer on the Abuja-Kaduna Dual Carriageway to the company on 23rd October 2024, stating that it should agree, in writing, to accept the reviewed contract sum of N740.79bn within seven days or risk the termination of the said contract.
“It is a sad commentary on the company that rather than accepting the offer, they tinkered with the bills of quantities as well as that of engineering measurements and evaluation via a letter to the Ministry dated 29th October 2024.
“The company was summoned for a meeting with the Management of the Ministry today, 4th November, 2024 but refused to show up, hence the termination of the contract based on effluxion of time and non-performance.”
With the latest development, this means the Works Minister, David Umahi, has revoked 11 contracts in 16 months.
