The Federal Ministry of Works has explained the reason behind the terminated Section 1 (Abuja-Kaduna) of the contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway, previously awarded to Julius Berger, due to non-compliance with reviewed cost, scope, and terms.
The contract, valued at N740 billion, was initially awarded in 2017, with an initial sum of N155.748 billion.
However, after several variations and augmentations, the ministry re-scoped the contract and obtained approval from the Federal Executive Council (FEC) for a downward review to N740.797 billion.
The termination notice, issued on November 4, 2024, cited Julius Berger’s refusal to remobilise to the site and comply with the reviewed terms.
The company allegedly tinkered with the bills of quantities and engineering measurements, despite being given a seven-day ultimatum to accept the revised contract sum.
This was contained in a statement signed by the Director of Press and Public Relations of the ministry, Mohammed Ahmed.
“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 (yesterday) November 4, 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.
Nigerians may wish to know that the Contract for the Rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual carriageway, which was divided into three (3) Section was awarded to the company on 20th December, 2017and flagged off by the then Minister of Power, Works and Housing, Babatunde Fashola, at an initial sum of N155.748,178,425.50 billion on 18th June, 2018.
“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 the redesigning and re-scoping of the Section I of the contract.
“The alignment was divided into two with one phase redesigned to be on Continuously Reinforced Concrete Pavement (CRCP), while the remaining with asphaltic pavement.
“Approval for Section I, Phase 1 for a length of 38 (thirty-eight) kilometres on the concrete pavement was given to Messrs Dangote Industries (Nig.) Ltd, while the remaining 127 (one hundred and twenty-seven) kilometres remained with the substantive contractor,” the statement partly read.