The Federal Ministry of Works has terminated the contract for the rehabilitation of the Abuja-Kaduna section of the Abuja-Kaduna-Zaria-Kano dual carriageway, initially awarded to Julius Berger. The termination notice was issued on November 4, 2024, due to non-compliance with project requirements, work stoppage, and the company’s refusal to remobilize.
The contract, awarded on December 20, 2017, included three sections. Sections II and III were partially completed during former President Buhari’s administration. In light of continued delays, the current minister re-scoped Section I, involving a redesign with part to be built by Dangote Industries.
Despite repeated negotiations over the past 13 months and a revised contract sum of approximately N740,797,204,173.25 approved by the Federal Executive Council, Julius Berger failed to accept the revised terms and was absent from a scheduled meeting, leading to the contract’s termination.
A statement by the Director of Press and Public Relations of the ministry, Mohammed Ahmed, explains it this way; “As due to the socio-economic importance of 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 October 23, 2024, stating that it should agree, in writing, to accept the reviewed contract sum of N740,797,204,173.25 within seven 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 and engineering measurements and evaluation via a letter to the ministry dated October 29, 2024. The company was summoned for a meeting with the Management of the Ministry today (yesterday), November 4, 2024, but refused to show up, hence the termination of the contract based on effluxion of time and non-performance.“
Julius Berger Plc has so far not reacted to the news of the termination of contract.
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