Federal Gov’t Terminates Contract For Abuja-Kaduna-Kano Highway Rehabilitation

The Federal Government has terminated a contract awarded to Julius Berger for the rehabilitation of Abuja-Kaduna-Zaria-Kano dual carriage highway section 1 for refusing the reviewed N740,797,204,173.25 price and others.

A statement by the Director of Information, Ministry of Works, Mohammed Ahmed, said the contract was terminated due to non-compliance with reviewed cost, scope and terms of the project, including stoppage of work and refusal to mobilise to site.

He noted that the Ministry of Works had 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), on November 4, 2024.

He said the notice was borne out of several months of going back and forth without any meaningful progress reached at a Management meeting of the Ministry.

He said the Ministry has, in the last 13 months, been in constant talks with the construction company, in order to reach an amiable position on the said alignment but to no avail.

He explained that the contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, which was divided into three Sections, was awarded to the Julius Berger on December 20, 2017, and flagged off on June 18, 2018, by the then Minister of Power, Works and Housing, Babatunde Raji Fashola, at an initial sum of N155.748,178,425.50.

He said Sections II (Kaduna – Zaria) and III (Zaria – Kano) were partially completed and handed over during the twilight of the administration of former President Muhammadu Buhari.

“Since then, it has been one variation and augmentation or the other and finally, the present Minister of Works directed for the redesigning and re-scoping of the Section I of the contract,” he said.

The statement said the alignment was divided into two with one phase redesigned to be on continuously reinforced concrete pavement (CRCP), while the remaining with asphaltic pavement.

He explained further that approval for the Section I, Phase 1 for a length of 38 kilometres on concrete pavement was given to Messrs Dangote Industries (Nig.) Ltd, while the remaining 127 kilometres remained with the substantive contractor.

The Phase 1 was flagged off on October 17, 2024, with a 14-month completion period, but due to the stalemate of the contract, the Ministry re-scoped it and got the approval of the Federal Executive Council (FEC).

“The award for the Re-scoping and Downward Review of Contract for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna and Kano States, Contract No.6350, Section I (Abuja-Kaduna) in favour of Messrs Julius Berger (Nig.) Plc from the sum of N797,263,523,738.87 to N740,797,204,173.25 was granted by FEC on 23rd September, 2024 and conveyed to the company on 3rd October, 2024,” he added.

He said that the Ministry conveyed the approval for a Final Offer on the Abuja – Kaduna Dual Carriageway to the company on 23rd October, 2024, stating that it should agree, in writing, to accept the reviewed contract sum of N740,797,204,173.25 within seven days or risk the termination of the said contract.

“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,” he stated.