The Minister of Works, Engr. Dave Umahi, has revealed that the Federal Government will save over N640 billion by terminating Julius Berger’s contract for the Abuja-Kaduna-Zaria-Kano road project.
Speaking before the House of Representatives Adhoc Committee, Umahi explained that the contract was recently revoked due to the contractor’s failure to adhere to the terms of the agreement.
He added that the project would be re-awarded for a concrete road, which he claimed would cost significantly less than the N1.5 trillion Julius Berger had requested due to variations.
Umahi further assured that the new road would be of superior quality and completed within a shorter time frame.
He expressed his dissatisfaction with the handling of the project over the past seven years and emphasized the savings of N640 billion by terminating the contract.
“Had we accepted the N1.5 trillion demand from Julius Berger, we would have been in a far worse situation. Now, we’re saving over N640 billion and improving the road’s structure,” he stated.
The Minister also noted that the project’s conditions required completion within 14 months, with no variations unless the exchange rate exceeded N2000 per dollar.
However, Julius Berger reportedly refused to meet these conditions, leading to the termination of the contract.
He defended his decision, stating that it was within his right to choose the type of pavement for the road and expressed confidence that concrete was the more cost-effective option.
Umahi highlighted the poor condition of the road, which had led to incidents of kidnapping, and said that despite requests to Julius Berger to fix potholes, the company had failed to act.
Addressing concerns about the possibility of awarding the contract to Julius Berger again, Umahi clarified that the project would be open to all bidders, including the contractor, if they chose to participate.
The Committee Chairman, Rep. Aminu Sani Jaji, pointed out discrepancies in the figures presented by the Ministry and the contractor.
He directed the Ministry to provide all relevant documents related to the project for further review.
