The Federal Government has given Julius Berger a final seven-day ultimatum to accept its revised proposal of ₦740.79 billion to complete the 82km Section II of the Abuja-Kaduna-Zaria-Kano road. Failure to comply will result in the termination of the contract.
During a courtesy visit from Dr. Pier Lubasch, the new Managing Director of Julius Berger Plc, alongside the outgoing Managing Director, Dr. Lars Richter, Minister of Works David Umahi emphasized the urgent need to resolve ongoing negotiations that have dragged on for far too long.
A statement from Orji Uchenna, the Minister’s Special Adviser on Media, noted that the meeting aimed to introduce the new executive to the minister. This ultimatum comes on the heels of previous warnings from Umahi to revoke the contract awarded to Julius Berger back in 2018 under former President Muhammadu Buhari’s administration.
While the Kaduna-Zaria section is complete and the Zaria-Kano section is nearing completion, progress on the Abuja-Kaduna section has stalled at just 27% over the past six years.
Last week, Umahi accused Julius Berger of politicizing the highway project to tarnish the current administration’s reputation. He expressed concern about the delays in mobilizing to the site, despite the Federal Executive Council approving the necessary funds, stating that this is causing significant hardship for road users and reflecting poorly on the government.
“If Julius Berger is not prepared to proceed, then we’ll seek other contractors who can deliver on time,” Umahi declared. He criticized the company’s “ping-pong game” over the contract, noting that costs had escalated from ₦710 billion to ₦740 billion due to the ongoing delays.
The minister expressed disappointment that Julius Berger, a company that has benefitted from years of government support, is not being realistic with its contract pricing amid Nigeria’s economic challenges. He urged the contractor to either accept or reject the approved sum within seven days, or face contract revocation.
“This offer is not open to negotiation,” Umahi stated firmly. “After 14 months of discussions without resolution, it’s time to end the negotiations. If a contractor has abandoned multiple projects, we cannot allow Nigerians to suffer further.”
Umahi highlighted the need for construction firms to be realistic about pricing to support Nigeria’s critical road infrastructure development, which is essential for the nation’s economic transformation.
In response, Dr. Lubasch promised to address the issues promptly and expressed hope that a consensus could be reached to advance the project without further delays. The outgoing managing director reiterated that the primary purpose of the visit was to introduce the new managing director.
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