Minister of Works, David Umahi, don give Julius Berger a final seven-day ultimatum to accept Federal Government‘s offer of N740.79bn for the completion of the 82km section II of the Abuja-Kaduna-Zaria-Kano road. If dem no accept, dem go terminate the contract.
Umahi issue dis ultimatum during a courtesy visit by the new Managing Director of Julius Berger Plc, Dr Pier Lubasch, and the outgoing Managing Director, Dr Lars Richter, at the Ministry Headquarters in Abuja. The visit na to introduce the new executive officer to the Minister.
The project, which dem award to Julius Berger in 2018 under former President Muhammadu Buhari’s administration, dey face serious delay. While the Kaduna-Zaria section don complete and the Zaria-Kano section almost complete, the Abuja-Kaduna segment only reach 27% progress in six years.
Umahi express frustration over the prolonged negotiations and the delay in mobilising to the site, despite the Federal Executive Council approving the funds. He say the delay dey cause significant hardship for road users and reflect poorly on the government.
“If Berger cannot do it, let’s find others who can and within a timeframe where we can control costs. We’ve received over 20 letters from Berger on this. The price has risen from N710bn to N740bn due to these delays, and if this continues, it will become a problem for the Ministry of Works,” Umahi say.
He urge the contractor to accept or reject the revised contract sum within seven days, warning that the contract would be revoked if dem fail to comply. He add that the government no go allow itself to be held hostage by contractors demanding unrealistic pricing and additional costs.
“This offer is not subject to any conditions,” he say. “If negotiations have dragged on for 14 months with no resolution, it’s time to end the discussion. A businessperson knows that negotiations must eventually conclude.”
The new Managing Director of Julius Berger promise to revert on the issues raised and hope for a swift resolution to avoid further delays.
