Abuja-Kaduna-Kano Road: Ongoing Construction To Save Nigeria Over ₦640bn – Umahi

The Nigerian Minister of Works, Mr. Dave Umahi, has explained that the decision to switch from using asphalt for the construction of the Abuja-Kaduna-Zaria-Kano Road to concrete will save the Federal Government over N640 billion.

The contract for the construction of the road, which was awarded to Julius Berger, was recently terminated by the minister, who accused the contractor of unethical practices and failure to abide by the terms of the project. The minister said when re-awarded, it would be for a concrete road.

Mr. Umahi said this when he appeared before the Ad hoc Committee to Monitor the Construction of the Road, chaired by Hon. Aminu Jaji.

The minister was displeased that the project, which he said was uncompleted and shoddy, has lasted about seven years.

He said by their estimation the decision would save the Federal Government over N640 billion from the N1.5 trillion demanded by Julius Berger due to variation. He also said the road would be of better quality and would be done in record time.

“By my engagement of my approach, I saved the nation N640 billion from Julius Berger. And we are improving on the architecture of the road,” Mr. Umahi said.

He noted that they were well within their rights to terminate the contract, as the problem with Julius Berger was not just a problem of money.

He said that the ministry adequately engaged the contractor over how the matter could be resolved but to no avail.

“The problem of Berger is not just a problem of cost. We said in our conditions for acceptance that this project must be completed in 14 months. This project is non-vary project unless the dollar goes beyond N2000 per dollar. They refused all those conditions and they set booby traps for us,” Umahi said.

He was queried by the committee if it would not be more expensive to re-award the contract when Berger had already done some work and if it would not be more cost-effective to retain the same contractor even for the concrete road project.

Umahi also said that there was no going back on the decision as the difference between the Ministry and Berger appeared irreconcilable.

He also said it would be unethical to just give the contract to Berger because the contract has to be thrown open for all to bid. He said Berger could still bid for the project if it wanted.

“We terminated the job within our rights as executives. They were fairly treated. It is within my right to determine choice of pavements. When you compare the cost, we are in safe haven. Leave the concrete, it is my baby. It’s cheaper to use concrete, and we are putting additional job of solar light and CCTV. 

“We were in negotiation with Berger for 14 months. it is within my right to terminate the job and we followed due process. I am happy the road was terminated from Berger. We had cases of kidnap on the road due to the condition of the road. We begged them to fix the potholes but they refused. Sections of the road were bad but they refused to do it,” he said.

Also Read: Abuja-Kaduna Road: Nigerian Government Terminates Contract with Julius Berger

The Chairman of the Committee on Works, Mr. Aminu Jaji, directed that all relevant documents related to the project be submitted so the committee could be better guided in addressing the issue.

The chairman also observed that there appeared to be discrepancies in the figures for the project presented by the ministry and the contractor.

He said the committee was not out to get anybody but to ensure the right thing is done in the interest of the country. He noted that their mandate was to push the ministry to ensure the job is done.

The minister was required to supply the committee contract agreement, certificate rates, evidence of payment made so far, among others.

“If the certificate was raised what was the value and the percentage of work covered. If you want a review, at what point do we do the review or what point was the review done. All this is information we require,” a member of the Committee, Idris Wase, who moved the motion for the submission of documents said.

Meanwhile, in an earlier meeting with the Committee, Julius Berger blamed the slow work on the road to poor and policy changes.

Speaking during the interactive meeting with the committee, the management team of the company led by Mr. Benjamin Bott said they were being owed by the federal government.

He said at a point, the work stopped because the government came with the option of concrete instead of asphalt for the construction.

He also recalled that at that point, the problem of insecurity kept workers away for 11 months due to a bomb blast in Kaduna and that their workers were attacked.

The committee had also directed the company to supply all documents related to the contract from when it was awarded till date.

The federal government also issued a termination letter to Julius Berger Plc regarding the construction of the Abuja-Kaduna-Zaria-Kano road project, which was reviewed at N740bn after a dispute over project costs and implementation.

The termination letter, signed by the Director of Legal Services, Federal Ministry of Works, C.O Assam, said the decision was in accordance with Clause 63 Standard Condition of Contract (Road Works) Volume 1, 1999 Edition, with effect from the date of service of the letter.

The letter addressed to the Managing Director of Julius Berger and dated November 21, said the contract was cancelled due to the contractor’s alleged uncooperative behaviour and repeated delays.