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

By Aanya Igomu

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The Nigerian government has terminated the contract with Messrs Julius Berger (Nig.) Plc for the rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, Section 1 (Abuja-Kaduna).

In a Press statement by the Director of Press and Public Relations for the Ministry of Works, Mr. Mohammed Ahmed, the contract was terminated due to non-compliance with reviewed cost, scope and terms, stoppage of work and refusal to remobilise to the site by Messrs Julius Berger (Nig.) Plc.

The Ministry has issued 14 days’ notice to the company.

The Media director said the management of the Ministry decided after 13 months of exchange with the contractors without reaching an amicable decision.

“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.

 “Due to the socio-economic importance of 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” the statement reads.

Recall that the contract for the Rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway was divided into three (3) Sections and awarded to the company on 20th December 2017 under the then Minister of Power, Works and Housing, H: E. Babatunde Raji Fashola.

However, under the administration of President Bola Tinubu, the Minister, David Umahi rescoped and redesigned the road Section of the road and awarded Messrs with a 14-month completion period.

 

Dominica Nwabufo

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