Julius Berger, FG Clash over N740bn 82km Section II Abuja-Kaduna Road Project
A battle of wits is taking place between the Federal Government and Julius Berger over the N740.7bn 82km Abuja-Kaduna Section II road project.
Minister of Works, Engr. Nweze David Umahi has given Julius Berger (Nig), Plc., a 7 days ultimatum to either accept the federal government’s offer of reviewed total contract sum of ₦740, 797,204,713.25 for the completion of the rehabilitation of the 82 km section II of the Abuja-Kaduna-Zaria-Kano road, contract No.6350 or forfeit the contract.
This was contained in a statement signed by the Minister’s Special Adviser (Media), Orji Uchenna Orji, on Wednesday.
According to him, the Minister appealed to Julius Berger Plc. to show “corporate patriotism” by accepting the Federal Government’s approved contract sum.
He said, Umahi spoke while receiving iin audience the new Managing Director of Julius Berger Plc, Dr. Pier Lubasch, who was accompanied by the outgoing Managing Director, Dr. Lars Richter at his office, in Abuja, on Wednesday.
Umahi expressed disappointment that the company’s delay in mobilizing to the site despite the approved funds by the Federal Executive Council, is causing untold hardship to the road users and that the Federal Government is at the receiving end of the situation.
The minister said, “So, if Berger is not doing it, then let’s have other people to do the job and within the time that we can control price.
“We’ve had more than 20 letters from Berger on this. It is a ping pong game from Julius Berger. The prices rose from ₦710 billion to ₦740 billion because of these delays. And if we continue the delays, it is the problem of the Ministry of Works.”
Orji quoted the the minister’s displeasure that Julius Berger Plc, which has had years of patronage by Federal Government and sub-national governments, is not realistic in the contract pricing, especially at this time of Nigeria’s economic challenges.
He, therefore urged the contractor to within 7 days accept or reject the approved reviewed contract sum for the completion of the rehabilitation of section II of the Abuja-Kaduna-Zaria-Kano road or face contract determination as Federal Government can not be held to ransom by the desire for unrealistic pricing and augmentation by contractors.
Umahi said, “This offer is not subject to any condition. It’s not subject to any condition that is being dished out here. It’s taken as given after more than 14 months.
“I’m sorry, I have to sound this way because there must be an end to negotiation. If anybody says there shouldn’t be an end to negotiation, then that person is not a business person. If you have negotiated for 14 months without any result, you should terminate the negotiation.”
While welcoming the new Managing Director, the minister reiterated the need for construction companies working with the Federal Ministry of Works to prepare to make sacrifices in terms of value for money and realistic contract pricing, so as to encourage the much needed road infrastructure revolution for the nation’s economic transformation which is a cardinal agenda of the Renewed Hope administration of the President Bola Ahmed Tinubu, GCFR.
The Minister further said, “Already, a number of Berger projects have been terminated because the site has been abandoned.
“And we needed to do something about it because Nigerians are suffering. Nigerians are crying, and they are insulting the President. We can not allow that to be happening.”
In response, the new Managing Director promised to revert as soon as possible on the issues sought to be addressed and hoped that consensus would be reached for the project to take off without further delay.
The outgoing Managing Director, however, noted that the essence of the courtesy call to the Honourable Minister of Works was to introduce the new Managing Director of the company.
