The Federal Government has ordered Julius Berger Nigeria Plc to expedite the completion of key infrastructure projects, including the 82-kilometer Section II of the Abuja-Kaduna-Zaria-Kano dual carriageway and the construction of the Bodo-Bonny road, which includes bridges across the Opobo Channel, Route 430 in Rivers State.
This directive comes after the Federal Executive Council (FEC) approved the re-scoping and downward review of the contracts for these projects. The Abuja-Kaduna-Zaria-Kano dual carriageway rehabilitation, initially set at ₦740 billion, has seen partial payments amounting to ₦391 billion, leaving a balance of ₦340 billion. The revised total contract for the Bodo-Bonny road is now ₦80 billion, with the entire budget for both projects totaling ₦820.87 billion.
The government has given Julius Berger a strict 14-month deadline to complete the Abuja-Kaduna-Zaria-Kano project and an additional 12 months for the Bodo-Bonny road.
In a stern warning, the Minister of Works, David Umahi, emphasized that the government will not entertain any further increases in the reviewed contracts. He also made it clear that the contracts could be terminated with the approval of President Bola Tinubu if Julius Berger fails to comply with the terms.
“The President has shown immense interest in these projects. We cannot afford to be stuck in endless negotiations. The contracts must be completed within the given timelines,” Umahi stated during a meeting with Julius Berger representatives in Abuja on October 3, 2024.
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Umahi urged Julius Berger to demonstrate corporate nationalism in price negotiations, considering the current economic climate. He called for the contractor to mobilize resources at multiple locations on both projects to ensure timely completion.
“The prices set for these projects reflect the economic realities of the moment. We appeal to you not to request any contract sum increases. If Julius Berger cannot accept the ₦740 billion contract for the Abuja-Kaduna road, we will terminate it,” Umahi warned.
The Bodo-Bonny project is also facing intense scrutiny. Umahi urged Julius Berger to deploy resources to at least three different locations to ensure the project is completed within the next 12 months. The revised contract sum for this project is now ₦280 billion, and the government has proposed a 30% advance payment to help the contractor manage inflationary pressures.
The meeting concluded with the formal handover of the revised Letters of Award to Julius Berger, with the government reaffirming that the contracts are fixed and non-transferable, adding that they will be automatically terminated if not completed within the set timeframes.
