Umahi
FG threatens to revoke Abuja-Kano Highway contract as Julius Berger seeks project review
The Federal Government has threatened to cancel the contract of section of the Abuja-Kaduna-Kano highway if Julius Berger (Nig) Plc refused to accept the N740.7bn approved by the Federal Executive Council (FEC) for completion of the road.
Minister of Works, Engr David Umahi, spoke at a meeting with Julius Berger (Nig.)Plc, which was represented by its Executive Director, Projects, Engr. Banjamin Bott.
According to the minister, the Federal Government has paid N391bn, while the new reviewed price leaves government with an additional N391bn to complete the road.
The minister had earlier said Julius Berger was requesting for the review of the project to N1.35trn.
He said the road was initially contracted for N165bn and reviewed to N654bn during the administration of President Muhamamdu Buhari.
He said, “We have written to the President to approve that if JBN Plc does not accept the N740 billion, we will terminate the contract. We have terminated some of their jobs because we’ve been negotiating sometimes 12 months, 13 months. There must be an end to negotiation.
“We are ready to pay you (JBN Plc) even fresh mobilisation, just to underscore the interest of the President on this project. So, we are appealing and begging you that by Monday, you should be able to sign the addendum to the contract.”
He said the company should move towards the completion of the rehabilitation of the 82-km Section II of the Abuja – Kaduna – Zaria – Kano Dual Carriageway in FCT, Kaduna, and Kano States, within 14 months.
The minister noted that the Federal Executive Council (FEC) at its meeting in September, 2024 approved the re-scoping and downward review of the contract for the rehabilitation of the Abuja – Kaduna – Zaria – Kano Dual Carriageway in the FCT, Kaduna and Kano States, contract No. 6350 and that of Bodo-Bonny road with bridges across the Opobo channel, route 430 in Rivers State, contract No. 6247, to a total contract sum of N740.7bn and N80bn respectively.
“Then we have section II, which is 82 kilometers by two, which is the section that JBN Plc is working on. And so, if you check what FEC approved on 23rd of September, FEC had approved that the total contract sum within the scope of Berger would be N740bn, which means that if you remove N391bn paid already, you now have about N340 billion remaining, which is the scope of their work for the 164 kilometers,” he said.