FG revokes road contract handled by Julius Berger

The Federal Government has revoked the contract for a section of the Abuja-Kaduna highway being handled by Julius Berger due to slow progress.

Awarded in 2018 under former President Muhammadu Buhari, the project has seen the completion of the Kaduna-Zaria section and significant progress on the Zaria-Kano section.

However, the Abuja-Kaduna section has only recorded 27% progress in six years.

During the inauguration of the highway’s rehabilitation, Minister of Works Sen. David Umahi accused Julius Berger of politicizing the project, noting that the company initially sought N1.5 trillion for the project, which was later reviewed to N740 billion by the Federal Executive Council (FEC).

“Berger said to do this entire job, it needs N1.5tr, 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 it and the rate. But we did not know they were playing games by continue to play delay tactics and at that time their side was N710bn, both completed and those to be done. Later, they came back that they wanted an increase to N740bn, we went to FEC and they gave approval only for them last week to say they need another increase to N903bn.

“Even if we accept it, other contractors will want the same and it will increase the project to about N4bn per kilometre which is on asphalt. Our position is that we are not increasing this project for Julius Berger beyond N740bn, 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.”

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

Speaking earlier, the ministry ‘s Director of Highway Construction, Engr. 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 is 38 kilometre dual within the section one and will cost N145bn with a 14 months completion date.

Similarly, the project which was formerly funded by the Presidential Infrastructure Development Fund (PIDF), will now be paid for through the Tax Credit Scheme.