FG May Terminate Julius Berger Abuja-Kaduna Road Contract In 7 Days

Construction giant, Julius Berger, has but 7 days to accept the Federal Government’s offer of N740.79bn to complete the 82km section II of the Abuja-Kaduna-Zaria-Kano, or have the contract terminated.

The Minister of Works, David Umahi issued the ultimatum when the new Managing Director of Julius Berger Plc, Dr Pier Lubasch paid him a courtesy call.

The visit was to introduce the new executive officer, who was accompanied by the outgoing Managing Director, Dr Lars Richter, to the Ministry Headquarters in Abuja.

A statement signed by the Special Adviser (Media) to the Honourable Minister of Works, Orji Uchenna, on Wednesday, noted the minister expressing frustration at the prolonged negotiations that had pervaded the project.

This follows Umahi’s earlier threat to revoke the contract, initially awarded to Julius Berger in 2018 under former President Muhammadu Buhari’s administration.

As against the Kaduna-Zaria section that had been completed and the Zaria-Kano section near completion, the Abuja-Kaduna segment has only reached 27% progress in six years.

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“If Berger cannot do it, let’s find others who can and within a timeframe where we can control costs. We’ve received over 20 letters from Berger on this.

“The price has risen from N710bn to N740bn due to these delays, and if this continues, it will become a problem for the Ministry of Works”, the minister stated.

The minister expressed dissatisfaction that the project was receiving delays saying that it was being politicized by the contract company to tarnish the image of the current government.

According to him, the construction giant has 7 days to accept or reject the revised contract after failing which the federal government may be forced to revoke it.

“This offer is not subject to any conditions. If negotiations have dragged on for 14 months with no resolution, it’s time to end the discussion.

“A businessperson knows that negotiations must eventually conclude.”

“Several Berger projects have already been terminated due to site abandonment, and we must act because Nigerians are suffering and blaming the President. We cannot let this continue”, the minister stated.