The Minister of Works, David Umahi, has given Julius Berger a final seven-day ultimatum to accept the Federal Government’s offer of N740.79bn for the completion of the 82km section II of the Abuja-Kaduna-Zaria-Kano road or risk termination of the contract.
Umahi, expressing frustration at the prolonged negotiations,
insisted the project must be resolved within the next seven days.
The ultimatum was issued during a courtesy visit to the
Minister by the new Managing Director of Julius Berger Plc, Dr Pier Lubasch,
accompanied by the outgoing Managing Director, Dr Lars Richter, at the Ministry
Headquarters in Abuja.
A statement signed by the Special Adviser (Media) to the
Honourable Minister of Works, Orji Uchenna, on Wednesday, noted that the visit
was to introduce the new executive officer to the Minister.
This latest development follows Umahi’s earlier threat to
revoke the contract, initially awarded to Julius Berger in 2018 under former
President Muhammadu Buhari’s administration.
While the Kaduna-Zaria section has been completed and the
Zaria-Kano section is near completion, the Abuja-Kaduna segment has only
reached 27% progress in six years.
At an event last week, Umahi accused Julius Berger of
politicising the project to tarnish the current administration’s image.
During the meeting, Umahi voiced concern over the delay in
mobilising to the site, despite the Federal Executive Council having approved
the funds.
He stressed that the delay is causing significant hardship
for road users and reflects poorly on the government.
He remarked, “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 expressed disappointment that Julius Berger, a company
that has long benefited from government support, is not being realistic with
its contract pricing, especially given the nation’s current economic
challenges.
He urged the contractor to accept or reject the revised
contract sum within seven days, warning that the contract would be revoked if
they failed to comply. He added that the government would not allow itself to
be held hostage by contractors demanding unrealistic pricing and additional
costs.
“This offer is not subject to any conditions,” he said. “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.”
“Several Berger projects have already been terminated due to
site abandonment, and we must act because Nigerians are suffering and blaming
the President. We cannot let this continue.”
The former Ebonyi Governor stressed that construction firms
working with the Ministry must be prepared to offer value for money and
realistic pricing to support the road infrastructure revolution essential for
Nigeria’s economic transformation.
In response, the new Managing Director of Julius Berger
promised to revert on the issues raised and hoped for a swift resolution to
avoid further delays.
The outgoing Managing Director clarified that the primary
purpose of the visit was to introduce the new Managing Director to the
Minister.
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