The Federal Ministry of Works has terminated section 1 (Abuja-Kaduna) of the contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway earlier awarded to Julius Berger.
The notice for the termination of the N740bn contract was issued in Abuja, late on Monday.
A statement to this effect was issued by the Director of Press and Public Relations of the Ministry, Mohammed Ahmed.
He said, “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, 4th November, 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) Sectionswas awarded to the companyon 20th December, 2017and flagged off by the then Minister of Power, Works and Housing, H:E. Babatunde Raji Fashola at an initial sum of N155.748,178,425.50 billion on 18thJune, 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, GCFR.
“Since then it has been one variation and augmentation or the other and finally, the present Minister of Works directed for 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 the Section I, Phase 1 for a length of 38 (thirty-eight) kilometres on 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 Phase 1 was flagged off on 17th October, 2024 with a 14-month completion period.”
He further said, “Due to the stalemate of the contract and, most importantly, the desire of His Excellency, President Bola Ahmed Tinubu, as encapsulated in the Renewed Hope Agenda infrastructure initiative, to see to the completion of this laudable project, also to alleviate the sufferings of Nigerians plying the road, the Ministry re-scoped it and got the approval of the Federal Executive Council (FEC).
“ The award for the Re-scoping and Downward Review of Contract for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna and Kano States, Contract No.6350, Section I (Abuja-Kaduna) in favour of Messrs Julius Berger (Nig.) Plc from the sum of N797,263,523,738.87 (seven hundred and ninety-seven billion, two hundred and sixty-three million, five hundred and twenty-three thousand, seven hundred and thirty-eight naira eighty-seven kobo) to N740,797,204,173.25 was granted by FEC on 23rd September, 2024 and conveyed to the company on 3rd October, 2024.
“As due to the socio-economic importance the road as a vital artery connecting Abuja, the FCT to the North, the Ministry conveyed the approval for a Final Offer on the Abuja – Kaduna Dual Carriageway to the company on 23rd October, 2024, stating that it should agree, in writing, to accept the reviewed contract sum of N740,797,204,173.25 within seven (7) days or risk the termination of the said contract. It is a sad commentary on the Company that rather than accepting the offer, they tinkered with the Bills of Quantities, as well as that of Engineering Measurements and Evaluation via a letter to the Ministry dated 29th October, 2024. The company was summoned for a meeting with the Management of the Ministry, today, 4th November, 2024 but refused to show up, hence the termination of the contract based on effluxion of time and non- performance.