Construction giant Julius Berger has been ordered to evacuate the project site of the Section One rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway.
The Federal Ministry of Works spokesperson Mohammed Ahmed, stated this in a statement on Monday, adding that the decision was reached during a management meeting of the ministry at its headquarters.
The order was sequel to the two weeks’ deadline given to the company on Monday, dismissing any possibility of further negotiations.
The ministry accused Julius Berger of not complying with the reviewed cost, scope, and terms, stoppage of work, and refusal to remobilise to the site, as directed, adding that negotiations had been ongoing for several months without any significant progress.
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.”
21t CENTURY CHRONICLE learnt that the works ministry had in the last 13 months been in liaising with the company to reach an amiable position on the said alignment but to no avail.
Based on this, the Mminister of Works and housing, David Umahi had threatened to revoke the contract awarded to the company in 2018 by the President Muhammadu Buhari government.
The Kaduna-Zaria section has been completed while the Zaria-Kano section is almost done, with the Abuja-Kaduna section recording just 27 per cent progress in six years.
Two weeks ago, Umahi said Julius Berger was playing politics with the highway to project the current administration in bad light.
Despite these efforts, an agreement was not reached between both parties, with the construction company not attending the scheduled meeting on Monday.
With this, Umahi has revoked 11 contracts in 16 months.
