FG Terminates ₦740bn Abuja-Kaduna Road Contract With Julius Berger Over Non-Performance

FG has terminated the ₦740bn Abuja-Kaduna road contract with Julius Berger over non-performance.

Glamtush reports that the Federal Government has terminated the ₦740bn contract for the rehabilitation of the Abuja-Kaduna dual carriageway with Julius Berger (Nig.) Plc over non-performance.

This online news platform recalls that last month, 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 lamented that the delay in mobilising to the site despite the approved funds by the Federal Executive Council was causing untold hardship to the road users and that FG was at the receiving end of the situation.

In an updated statement by the Director, Press and Public Relations, Federal Ministry of Works, Mohammed Ahmed on Monday said the contract was terminated after the notice of termination to the company for the completion of the project elapsed on Monday.

The ministry also said it had held different discussions with the company over several months; however, the discussions failed to yield results.

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 six years.

Umahi at an event penultimate week, also accused the company of playing politics with the highway to make the current administration look bad

The Monday 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.

“Nigerians may wish to know that the Contract for the Rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, which was divided into three (3) Sections was awarded to the company on 20th December, 2017 and flagged off by the then Minister of Power, Works and Housing, H:E. Babatunde Raji Fashola at an initial sum of N155.748,178,425.50billion (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) 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 (CRCP), while the remaining with asphaltic pavement. Approval for Section I, Phase 1 for a length of 38 (thirty-eight) kilometres on 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.

“The Phase 1 was flagged off on 17th October, 2024 with a 14-month completion period.

“Due to the stalemate of the contract and, most importantly, the desire of His Excellency, President Bola Ahmed Tinubu, GCFR, as encapsulated in the Renewed Hope Agenda infrastructure initiative, to see to the completion of this laudable project, also to alleviate the sufferings of Nigerians plying the road, the Ministry re-scoped it and got the approval of the Federal Executive Council (FEC).

“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 (Nig.) Plc from the sum of 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 hundred and forty billion, seven hundred and ninety-seven million, two hundred and four thousand, one hundred and seventy-three naira twenty-five kobo)was granted by FEC on 23rd September, 2024 and conveyed to the company on 3rd October, 2024.

“As due to the socio-economic importance the road as a vital artery connecting Abuja, 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 N740,797,204,173.25 (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 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.”