The Federal Government of Nigeria has officially terminated the contract for the Abuja-Kaduna dual carriageway earlier awarded to Julius Berger Nigeria Plc.
This decision, which involves an amount of ₦740 billion, was made due to the company's failure to perform as expected.
The termination follows an ultimatum issued by the Minister of Works, David Umahi, who allowed the company a seven-day period to accept the Federal Government's offer of ₦1.79 billion for the completion of the 82-kilometer section II of the road.
Minister Umahi expressed his dissatisfaction regarding the delays in mobilizing resources to the construction site, despite the prior approval of necessary funding by the Federal Executive Council. He noted that these delays are imposing significant hardships on road users and reflecting poorly on the Federal Government.
According to a statement released by Mohammed Ahmed, the Director of Press and Public Relations at the Federal Ministry of Works, the contract was annulled after the notice for completion provided to the company lapsed on the preceding Monday.
While the Kaduna-Zaria section has been completed and the Zaria-Kano section is approaching completion, the Abuja-Kaduna section has only achieved 27 percent progress over the past six years. At an event held two weeks ago, Minister Umahi accused the company of politicizing the highway project to undermine the reputation of the current administration.
The statement read in part: “Based on non-compliance with reviewed cost, scope and terms, stoppage of work and refusal to remobilise to site, as directed, the Federal Ministry of Works has issued a 14-day Notice of Termination to Messrs Julius Berger (Nig.) 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, 4th November, 2024.
“The decision, which is borne out of several months of going back and forth without any meaningful progress was reached at a Management meeting of the Ministry. The Ministry has in the last 13 months been in constant talks with the company, in order to reach an amiable position on the said alignment but to no avail.
“It is a sad commentary on the Company that rather than accepting the offer, they tinkered with the Bills of Quantities, as well as that of Engineering Measurements and Evaluation via a letter to the Ministry dated 29th October 2024.
“The company was summoned for a meeting with the Management of the Ministry, today, 4th November 2024 but refused to show up, hence the termination of the contract based on effluxion of time and non-performance.”
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