Nigerian Govt Terminates N740bn Abuja-Kaduna Road Contract With Julius Berger
Umahi expressed his frustration over the delay in mobilizing to the site, despite the Federal Executive Council having approved the necessary funds.
The Abuja-Kaduna dual carriageway contract with Julius Berger Nig Plc has been terminated.
The Federal Government terminated the ₦740 billion contract over non-performance.
This comes after the Minister of Works, David Umahi issued a seven-day ultimatum to the company to accept FG’s offer of N740.79bn for the completion of the 82km section II of the road.
Umahi expressed his frustration over the delay in mobilizing to the site, despite the Federal Executive Council having approved the necessary funds.
He stated that this delay is causing significant hardship for road users, and the Federal Government is negatively impacted by the situation.
According to a statement from Mohammed Ahmed, the Director of Press and Public Relations at the Federal Ministry of Works, the contract was terminated after the notice for completion to the company expired on Monday.
While the Kaduna-Zaria section has been completed and the Zaria-Kano section is nearing completion, the Abuja-Kaduna section has only achieved 27 percent progress over the past six years.
At an event two weeks ago, Umahi also accused the company of politicizing the highway project to tarnish the image of the current administration.
The statement read in part, “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 (Nig.) 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.
“The decision, which is borne out of several months of going back and forth without any meaningful progress was reached at a Management meeting of the Ministry. The Ministry has in the last 13 months been in constant talks with the company, in order to reach an amiable position on the said alignment but to no avail.
“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.”
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