.webp)
This directive follows a final 14-day termination notice issued on Monday, ending all possibilities for further negotiations.
According to the ministry, the termination decision stems from Julius Berger’s alleged non-compliance with updated project costs, scope, and terms, as well as its suspension of work and failure to resume operations as instructed.
Despite several months of negotiation aimed at resolving these issues, the company did not make significant progress.
The announcement, delivered by the Director of Press and Public Relations, Mohammed Ahmed, revealed that the ministry’s management reached the decision in a meeting at its Abuja headquarters.
This development follows a previous warning from the minister, who had threatened to revoke the contract if there were no improvements.
Awarded in 2018 under former President Muhammadu Buhari’s administration, the project has seen mixed progress across its sections: while the Kaduna-Zaria segment has been completed and the Zaria-Kano portion is nearing completion, the Abuja-Kaduna section has only reached 27% completion in six years.
Minister David Umahi recently criticized Julius Berger, accusing the company of politicizing the project to undermine the current administration.
The contractor’s absence from a scheduled meeting on Monday reportedly solidified the ministry’s decision to terminate the contract.
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.
(Punch)
.webp)
Post A Comment: