Government Threatens Contract Termination As Julius Berger Increases Abuja-Kaduna Road Cost To N903 Billion

The federal government on Thursday said it would cancel Julius Berger’s N740 billion portion of the Abuja-Kaduna highway contract, citing the company’s consistent raising of the contract value, from the negotiated amount of N740  billion to N903 billion, at the last instance .

This is coming almost six years after the federal government awarded the contract for the reconstruction of the highway, with portions of it currently becoming travellers’ nightmare.

The contract for the Abuja-Kaduna section of the project was awarded alongside the Kaduna-Zaria and Zaria-Kano sections on December 20, 2018, by the Muhammadu Buhari administration, and had an initial completion period of three years.

The reconstruction of the 375.9km dual carriageway from Abuja to Kano was first awarded at the cost of N155 billion. But the cost was reviewed in 2021 to N642.2 billion, according to available information.

In January this year, the current Minister of Works, David Umahi, said the contractor, Messrs Julius Berger Nigeria Plc, had asked for a further upward review to N1.35 trillion, an amount the minister said the government could not afford.

But speaking during the inauguration of rehabilitation of the highway on Thursday, Umahi accused Julius Berger of playing politics with the project, stressing that while the company was seeking about N1.5trillion for the project, it was recently reviewed to N740 billion by the Federal Executive Council (FEC).

He said: “Berger said to do this entire job it needs N1.5 trillion. We started negotiation since September last year, writing letters every week. Eventually, we told them that despite the ones they are requesting, it will still take them four years to complete as there have been traffic jam and kidnapping on the road.

“We presented the option of balkanising the road into three which the President approved. When we did that, Berger accepted the rate. But we did not know they were playing games by continuing to play delay tactics and at that time their side was N710 billion, both completed and those to be done.

“ Later, they came back that they wanted an increase to N740 billion. We went to FEC and they gave approval, only for them last week to say they need another increase to N903 billion,” Umahi lamented.

The minister stressed that there was no way the government will further raise the contract value after doing that previously, explaining that if Julius Berger fails to accept the new conditions, the government will have no choice but to revoke the deal.

“Even if we accept it, other contractors will want the same and it will increase the project to about N4 billion per kilometre which is on asphalt. Our position is that we are not increasing this project for Julius Berger beyond N740 billion. The game is over.

“ If they are not doing it, we will give it those that will do it on the same quality of the coaster road at a cheaper rate. They have put the project into politics, so they are using it to de-market our administration and we say enough is enough,” Umahi added.

He stated that the road which is 375km dualised (750km) will see the addition of 7.5 kilometres in Kogi and Kano States.

Speaking earlier, the ministry’s Director of Highway Construction, Umar Bakare, said the project was de-scoped while the outstanding sections of the project were re-awarded to Dangote and BUA.

He said the length of the road to be constructed by Dangote was 38 kilometre dual within the section one and will cost N145 billion, with a 14-month completion period.

Emmanuel Addeh

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