BREAKING: FG Orders Julius Berger To Vacate Abuja-Kano Road Project

FG has ordered Julius Berger to vacate Abuja-Kano Road Project.

 

NewsOnline Nigeria reports that the Federal Ministry of Works has directed Julius Berger, the contractor handling Section One rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, to evacuate the project site.

 

This followed a 14-day final termination notice issued to the company on Monday, dismissing any possibility of further negotiations.

 

The ministry 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.

 

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It noted that negotiations had been ongoing for several months without any significant progress.

 

A statement by the Director of Press and Public Relations, Mohammed Ahmed, disclosed this information on Monday in Abuja, stressing that the decision was reached during a management meeting of the ministry at its headquarters.

 

Recall that the works ministry had 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.

 

The latest development follows an earlier threat by the minister to revoke the contract that was awarded to the company in 2018 when former President Muhammadu Buhari was in power.

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.

 

At an event penultimate week, Umahi accused Julius Berger of playing politics with the highway to make the current administration look bad.

Despite these efforts, an agreement was not reached between both parties, with the construction company not attending the scheduled meeting on Monday.

 

The statement read in part, “Based on non-compliance with the reviewed cost, scope, and terms, stoppage of work and refusal to remobilise to the site, as directed, the Federal Ministry of Works has issued a 14-day Notice of Termination to Messrs Julius Berger 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, November 4, 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 Sections was awarded to the company on December 20, 2017, and flagged off by the former Minister of Power, Works, and Housing, Babatunde Fashola at an initial sum of N155.75bn on June 18, 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.

 

“Since then it has been one variation and augmentation or the other and finally, the present Minister of Works directed 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, while the remaining with asphaltic pavement.

 

“Approval for Section I, Phase 1 for a length of 38km on the concrete pavement was given to Messrs Dangote Industries (Nig.) Ltd, while the remaining 127km remained with the substantive contractor. Phase 1 was flagged off on October 17, 2024, with a 14-month completion period.”

Mohammed further explained that a request to rescope the project was approved by the Federal Executive Council but the contract’s terms were not agreed upon by the contractor.

 

He added, “Due to the stalemate of the contract and, most importantly, the desire of President Bola Tinubu, 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.

 

“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 Plc from the sum of N797.26bn to N740.79bn was granted by FEC on September 23, 2024, and conveyed to the company on October 3, 2024.”

 

With the latest development, this means the Works Minister, David Umahi has revoked 11 contracts in 16 months.