The Federal Government on Monday terminated Messrs. Julius Berger (Nig.) Plc’s contract for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna and Kano States, Contract No.6350, Section I (Abuja-Kaduna), due to non-compliance with the reviewed cost, scope, and terms, stoppage of work, and refusal to remobilize to the site as directed.
The Minister of Works, David Umahi, who made this disclosure, said the decision was taken during the ministry’s management meeting after several months of discussions by the ministry with the company on the project failed to yield the desired results.
Specifically, the Minister said that the ministry had continuously negotiated with the company over the past 13 months in an attempt to mutually agree on the modification of the contract’s execution but that the company failed to act on the decisions taken on the road rehabilitation.
He further clarified: “The Abuja-Kaduna-Zaria-Kano Dual Carriageway Rehabilitation Contract, which was awarded to the company on December 20, 2017, and flagged off by the then-Minister of Power, Works, and Housing, may be of interest to Nigerians.
“N155.748,178,425.50 billion (one hundred and fifty-five billion, seven hundred forty-eight million, one hundred and seventy-eight thousand, four hundred and twenty-five naira Fifty Kobo) was the initial amount Babatunde Raji Fashola received on June 18, 2018.
“During the final days of former President Muhammadu Buhari’s administration, Sections II (Kaduna–Zaria) and III (Zaria–Kano) were partially finished and turned over
“Since then, there have been various additions and modifications, and at last, the current Minister of Works ordered that Section I of the contract be redesigned and resized. Two phases of the alignment were created, one of which was redesigned to use continuously reinforced concrete pavement (CRCP) and the other to use asphaltic pavement. Messrs. Dangote Industries (Nig.) Ltd. received approval for Section I, Phase 1 for 38 (thirty-eight) kilometers of concrete pavement, while the substantive contractor retained ownership of the remaining 127 (one hundred and twenty-seven) kilometers. Phase 1 had a 14-month completion period and was flagged off on October 17, 2024.
“The Ministry re-scoped the project and received approval from the Federal Executive Council (FEC) due to the contract’s stalemate and, more importantly, His Excellency President Bola Ahmed Tinubu’s (GCFR) desire, as expressed in the Renewed Hope Agenda infrastructure initiative, to see this admirable project through to completion and to lessen the suffering of Nigerians who travel on it.
“On September 23, 2024, FEC granted 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) to Messrs. Julius Berger (Nig.) Plc from N797,263,523,738.87 (seven hundred and ninety-seven billion, two hundred and sixty-three million, five hundred and twenty-three thousand, seven hundred and thirty-eight naira eighty-seven kobo) to N740,797,204,173.25 (seven and forty billion, seven hundred and ninety-seven million, two hundred and four thousand, one hundred and seventy-three naira twenty-five kobo).
“Due to the road’s socioeconomic significance as a key route linking Abuja, the Federal Capital Territory, to the north, the Ministry approved a Final Offer for the Abuja-Kaduna Dual Carriageway on October 23, 2024, and instructed the company to agree in writing to accept the reviewed contract sum of N740,797,204,173.25 (seven hundred and forty billion, seven hundred and ninety-seven million, two hundred and four thousand, one hundred and seventy-three naira twenty-five kobo) within seven (7) days or risk the contract’s termination”, Umahi added.
He lamented that the company’s decision to alter the Bills of Quantities and Engineering Measurements and Evaluation in a letter to the Ministry dated October 29, 2024, instead of accepting the offer was a sad reflection on them.
The minister, therefore, justified the termination of the contract on the grounds of time elapsed and non-attendance after the company was called to a meeting with the Ministry’s management on Monday.
