Umahi Gives Julius Berger Seven-Day Deadline to Fix Abuja-Kaduna Road
Julius Berger has been given a final seven days by Works Minister David Umahi to accept the Federal Government’s offer of N740.79 billion to complete the 82km segment II of the Abuja-Kaduna-Zaria-Kano motorway, failing which the contract will be terminated.
Frustrated by the drawn-out negotiations, Umahi demanded that the project be finished in the upcoming seven days.The ultimatum was given at the Ministry Headquarters in Abuja during a courtesy visit to the Minister by Dr. Pier Lubasch, the new managing director of Julius Berger Plc, and Dr. Lars Richter, the departing managing director.
The visit was intended to introduce the new executive officer to the Honourable Minister of Works, Orji Uchenna, according to a statement signed by the Special Adviser (Media) to the Minister on Wednesday.
This most recent event comes after Umahi threatened to cancel the contract, which was first given to Julius Berger in 2018 during the administration of former President Muhammadu Buhari.
The Abuja-Kaduna stretch has only made 27% development in six years, but the Kaduna-Zaria part has been finished and the Zaria-Kano section is almost finished.
Julius Berger was accused by Umahi at an event last wee of politicising the project in order to damage the reputation of the current administration.
Even though the Federal Executive Council had approved the cash, Umahi expressed worry at the discussion about the delay in mobilising to the site.
He emphasised that road users are suffering greatly as a result of the delay, which also speaks poorly of the government.
He said, “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.”Given the country’s current economic difficulties, Umahi voiced disappointment that Julius Berger, a business that has long benefited from government assistance, is not being realistic with its contract pricing.
He warned that the contract would be terminated if the contractor did not comply and advised them to accept or reject the updated contract sum within seven days.
He went on to say that the government would not be kept captive by contractors who demanded exorbitant prices and extra expenses.“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 governor of Ebonyi emphasised that in order to support the road infrastructure revolution that is crucial to Nigeria’s economic development, construction companies collaborating with the Ministry must be ready to provide value for money and reasonablepricing.
The newly appointed Managing Director of Julius Berger responded by pledging to address the concerns brought up and expressing the hope that they would be resolved quickly to prevent more delays.
The visit’s main objective, according to the departing Managing Director, was to present the Minister to the new Managing Director.
