Federal Government threatens to revoke Julius Berger’s contract over price dispute

The Federal Government has urged Julius Berger (Nig) Plc to accept the N740.7bn approved by the Federal Executive Council (FEC) for completion of the remaining section of the Abuja-Kaduna-Kano highway.....Read Full Article>>

Minister of Works, Engr David Umahi, said this during a meeting with Julius Berger (Nig.)Plc, represented by its Executive Director, Projects, Engr. Banjamin Bott. He said already, the Federal government has paid N391bn while the new reviewed price means the government will pay an additional N391bn to complete the road.

Recall that the minister had earlier said Jukis Berger was requesting for the review of the project to N1.35trn.

The minister said the road which was initially contracted for N165bn was reviewed to N654bn during the administration of President Muhamamdu Buhari.

He, however, threatened to revoke the contract if Julius Berger does not accept the price, stating that the prices given on the said projects were the best in view of the economic reality.

“We have written to the President to approve that if JBN Plc does not accept the N740 billion, we will terminate the contract. We have terminated some of their jobs because we’ve been negotiating sometimes 12 months, 13 months. There must be an end to negotiation.”

“We are ready to pay you (JBN Plc) even fresh mobilisation, just to underscore the interest of the President on this project. So, we are appealing and begging you that by Monday, you should be able to sign the addendum to the contract.”

While urging the company to fast-track the completion of the rehabilitation of the 82-km Section II of the Abuja – Kaduna – Zaria – Kano Dual Carriageway in FCT, Kaduna, and Kano States, he called for its completion within 14 months.

“The minister noted that the Federal Executive Council (FEC) at its meeting in September, 2024 approved the re-scoping and downward review of the contract for the rehabilitation of the Abuja – Kaduna – Zaria – Kano Dual Carriageway in the FCT, Kaduna and Kano States, contract No. 6350 and that of Bodo-Bonny road with bridges across the Opobo channel, route 430 in Rivers State, contract No. 6247, to a total contract sum of N740.7bn and N80bn respectively.”

“Then we have section II, which is 82 kilometers by two, which is the section that JBN Plc is working on. And so, if you check what FEC approved on 23rd of September, FEC had approved that the total contract sum within the scope of Berger would be N740bn, which means that if you remove N391bn paid already, you now have about N340 billion remaining, which is the scope of their work for the 164 kilometers.”