The Minister of Works, David Umahi, has presented a seven-day deadline to Julius Berger, urging the company to accept the Federal Government’s proposal of N740.79 billion for the completion of the 82-kilometer section II of the Abuja-Kaduna-Zaria-Kano road.
This deadline was communicated during a courtesy visit from the new Managing Director of Julius Berger Plc, Dr. Pier Lubasch, who was accompanied by the outgoing Managing Director, Dr. Lars Richter, at the Ministry Headquarters in Abuja.
A subsequent statement issued by the Minister of Works’ Special Adviser (Media), Orji Uchenna, on Wednesday indicated that the company may face contract termination if it fails to accept the offer.
The Minister expressed concern over the ongoing delays in mobilizing to the site, despite the Federal Executive Council’s approval of funds, noting that this situation is causing significant hardship for road users and placing the Federal Government in a difficult position.
“The Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi, CON has for the umpteenth time called on Julius Berger Plc. to show corporate patriotism by accepting the Federal Government’s approved reviewed total contract sum of ₦740, 797,204,713.25 (Seven Hundred and Forty Billion, Seven Hundred and Ninety-Seven Million, Two Hundred and Four Thousand, Seven Hundred and Thirteen Naira, Twenty-Five Kobo for the completion of the rehabilitation of the 82 km section II of the Abuja-Kaduna-Zaria-Kano road, contract No.6350.
“So if Berger is not doing it, then let’s have other people to do the job and within the time that we can control price. We’ve had more than 20 letters from Berger on this. It is a ping pong game from Julius Berger. The prices rose from ₦710 billion to ₦740 billion because of these delays. And if we continue the delays, it is the problem of the Ministry of Works,” the statement reads.
The minister conveyed his disappointment regarding Julius Berger Plc, a company that has enjoyed extensive support from both the Federal Government and sub-national authorities, for its unrealistic approach to contract pricing, particularly in light of Nigeria’s current economic difficulties.
He consequently called upon the contractor to either accept or reject the revised contract amount for the completion of the rehabilitation of section II of the Abuja-Kaduna-Zaria-Kano road within a seven-day period.
Failure to do so may result in the termination of the contract, as the Federal Government cannot be held hostage by contractors seeking unreasonable pricing and additional costs.
He said, “This offer is not subject to any condition. It’s not subject to any condition that is being dished out here. It’s taken as given after more than 14 months. I’m sorry, I have to sound this way because there must be an end to negotiation. If anybody says there shouldn’t be an end to negotiation, then that person is not a business person. If you have negotiated for 14 months without any result, you should terminate the negotiation.”
In welcoming the new Managing Director of Julius Berger Plc, the minister emphasized the necessity for construction firms collaborating with the Federal Ministry of Works to be prepared to make sacrifices regarding value for money and realistic contract pricing.
This approach is essential to foster the critical road infrastructure revolution required for the nation’s economic transformation, which is a key priority of the Renewed Hope administration led by His Excellency, President Bola Tinubu.
He stated that several projects undertaken by Berger have been halted due to site abandonment. It is imperative to address this issue, as the citizens of Nigeria are enduring hardships and expressing their frustrations, which has led to discontent directed towards the President. Such circumstances cannot be permitted to continue.
The new Managing Director assured that he would respond promptly to the concerns raised and expressed hope that an agreement would be reached to initiate the project without further delays.
The outgoing Managing Director, on the other hand, highlighted that the primary purpose of the courtesy visit to the Honourable Minister of Works was to formally introduce the new Managing Director of the company.
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