The federal government has approved funds for the completion of Abuja-Kaduna-Kano dual carriage highway and the Bodo-Bonny road and tasked the contractor Julius Berger (Nig.) Plc on quality and timely delivery of the job.
The minister of Works Engr. David Umahi particularly tasked the contractor on the need to fast-track 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 and the construction of the Bodo – Bonny road with bridges across the Opobo Channel, Route 430 in Rivers State.
Umahi gave the charge during a meeting with Julius Berger (Nig.)Plc, represented by its executive director, Projects, Engr. Banjamin Bott and the head of Contract Management, Omonigho Brown at the ministry’s headquarters Mabushi, Abuja on 3rd October 2024.
The minister in a statement by his special adviser on Media, Barr. Orji Uchenna Orji disclosed that the Federal Executive Council (FEC) at its meeting of 23rd 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 the revised estimated total cost / augmentation of the contract for the construction of Bodo-Bonny road with bridges across the Opobo channel, route 430 in Rivers State, contract No. 6247, amounting to a total contract sum of N740,797,204,713. 25 and N80,076,361,036.13 respectively.
He tasked the contractors handling federal government’s projects on the need for corporate nationalism in price negotiation in the face of the daunting economic challenges facing Nigeria.
He said, “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 N740 billion, which means that if you remove N391 billion paid already, you now have about N340 billion remaining, which is the scope of their work for the 164 kilometers.”
He urged the contractor to mobilise in the four sections of the Abuja – Zaria – Kaduna – Kano project to finish the job within 14 months.
The minister stated that the prices given on the said projects were the best in view of the economic reality of the time.
He said, “So we are appealing to you not to try to increase the contract sum, because it will not be possible. And 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.”
He stated further “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.”
Umahi harped on the need for JBN Plc to mobilise in multiple locations of the two projects so as to complete them on a record time.
Speaking on the Bodo-Bonny project, he said “We don’t think we have any issue. We’ve agreed on the N280 billion, which is the new contract sum that is fixed, and then for a 12- month completion period; that is an additional 12 months. So we want you to mobilize in a minimum of three locations. So that within these 12 months, we’ll be able to finish the job.”
He added, “In the letter to NLNG, we have to also propose 30% advance payment, so that they will be able to have enough funds to mitigate inflation and any form of variation.”
According to the statement, the meeting ended with a formal handover of the Letters of Award in respect of the reviewed approved projects contract sums to Julius Berger (Plc), which terms contain inter alia: “that the contract is fixed,firm,non-transferable and deemed duly terminated by effluxion of time, unless otherwise formally reviewed by the Ministry.
