The federal government has terminated the contract for the
rehabilitation of the Abuja-Kaduna road by Julius Berger, a construction
company.
In a statement on Monday, Mohammed Ahmed, director of press
at the ministry of works, 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.
The contract covers section one of the
Abuja-Kaduna-Zaria-Kano dual carriageway.
According to Ahmed, negotiations had been ongoing for
several months without any significant progress.
“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,” Ahmed said.
“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.
“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.
“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 N155.7bn 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 the 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 the 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.”
‘CONTRACT TERMS WERE
NOT AGREED UPON’
The director said a request to rescope the project was
approved by the federal executive council (FEC), but the contractor did not
agree upon the contract’s terms.
“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),” he said.
“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 N797.2bn to N740.7bn
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 N740.7bn within seven (7) days or risk the
termination of the said contract.”
On September 23, Dave Umahi, minister of works, said the
Abuja-Kano road project handled by Julius Berger received approval for N740
billion.
Umahi said the project, which was initially valued at N155
billion, was revised to N797 billion by the previous administration and further
increased to N1.5 trillion.
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