The Federal Government has officially terminated Julius Berger’s contract for the Abuja-Kaduna-Zaria-Kano road, sparking new project management discussions.
In a bold decision, the Federal Ministry of Works has instructed Julius Berger, the contractor handling Section One rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, to vacate the project site.
This directive comes after a final 14-day termination notice was issued on Monday, closing the door on any further negotiations.
The ministry stated that the decision to terminate Julius Berger’s contract is due to the company’s alleged failure to comply with revised project costs, scope, and terms. Additionally, it suspended work and did not resume operations as directed.
After several months of negotiations to address these issues, the company failed to achieve significant progress.
The Director of Press and Public Relations, Mohammed Ahmed, announced that the ministry’s leadership made this decision during a meeting at its headquarters in Abuja.
This development comes after a prior warning from the minister, who had threatened to terminate the contract if improvements were not made.
Initiated in 2018 during former President Muhammadu Buhari’s administration, the project has experienced varying levels of progress across different segments. The Kaduna-Zaria segment is complete, and the Zaria-Kano portion is close to completion; however, after six years, only 27% of the Abuja-Kaduna section has been completed.
Minister David Umahi recently criticized Julius Berger, alleging that the company is politicizing the project to undermine the current administration.
The contractor’s failure to attend a scheduled meeting on Monday reportedly reinforced the ministry’s decision to terminate the contract.
The Federal Ministry of Works has issued a 14-day Termination Notice to Messrs Julius Berger Plc for the Rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna and Kano States (Contract No.6350, Section I: Abuja-Kaduna) on November 4, 2024. This decision follows non-compliance with revised cost requirements, scope conditions and terms; stoppage of work; and refusal to remobilize at the site as directed.
Nigerians might be interested to know that the contract for rehabilitating the Abuja-Kaduna-Zaria-Kano dual carriageway, divided into three sections, was awarded to a company on December 20, 2017. It was initiated by former Minister of Power, Works and Housing Babatunde Fashola with an initial amount of N155.75bn on June 18, 2018. Sections II (Kaduna – Zaria) and III (Zaria – Kano) were partially completed and handed over towards the end of former President Muhammadu Buhari’s administration.
Since then, the project has undergone various changes and expansions. Ultimately, the current Minister of Works ordered a redesign and reassessment of Section I of the contract. The alignment was split into two parts: one phase was reimagined with continuously reinforced concrete pavement, while the other continued to feature asphaltic pavement.
Messrs Dangote Industries (Nig.) Ltd received approval for Section I, Phase 1 involving a length of 38 km on concrete pavement. The remaining 127 km continued under the original contractor’s responsibility. Phase 1 commenced on October 17, 2024, with an expected completion period of fourteen months.
Mohammed added that while the Federal Executive Council approved a request to rescope the project, the contractor did not agree with the terms of the contract.
He mentioned that the ministry revised the project and obtained approval from the Federal Executive Council due to both a contract stalemate and President Bola Tinubu’s desire, as outlined in the Renewed Hope Agenda infrastructure initiative. This was done to ensure completion of this important project and alleviate hardships faced by Nigerians using the road.
The Federal Executive Council (FEC) approved the re-scoping and downward review of Contract No. 6350 for the rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway, specifically Section I (Abuja-Kaduna), reducing its cost from N797.26 billion to N740.79 billion in favor of Messrs Julius Berger Plc on September 23, 2024; this decision was communicated to the company on October 3, 2024.
As a result of the latest developments, Works Minister David Umahi has now revoked 11 contracts over the span of 16 months.
Peoplesmind
