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Minister of Works, David Umahi.
The Federal Government has approved N820bn for the completion of the rehabilitation exercise of the Abuja-Kaduna-Zaria-Kano dual carriageway and the Bodo-Bonny road, including bridges across the Opobo Channel.
This was disclosed in a statement by the Special Adviser (Media) to the Minister of Works, Orji Orji, on Sunday.
It stated, “The Federal Government has tasked Julius Berger (Nig.) Plc on the need to fast-track the completion of the rehabilitation of the 82km Section II of the Abuja – Kaduna – Zaria – Kano Dual Carriageway in FCT, Kaduna, and Kano states and the construction of the Bodo – Bonny road with bridges across the Opobo Channel, Route 430 in Rivers State.
“The Federal Executive Council at its meeting on September 23, 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 the revised estimated total cost/augmentation of the contract for the construction of Bodo-Bonny road with bridges across the Opobo channel, route 430 in Rivers State, contract No. 6247, amounting to a total contract sum of N740,797,204,713.25 and N80,076,361,036.13.”
The minister tasked the contractors handling the Federal Government’s projects on the need for corporate nationalism in price negotiation in the face of Nigeria’s daunting economic challenges.
He said “Then we have section II, which is 82km by two, which is the section that JBN Plc (Julius Berger) is working on. And so, if you check what FEC approved on the 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 N340bn remaining, which is the scope of their work for the 164km.”
He urged the contractor to mobilize in the four sections of the Abuja – Zaria – Kaduna – Kano project to finish the job within 14 months.
Umahi noted that the prices given on the said projects were the best given the economic reality of the time.
He stated, “So we are appealing to you not to try to increase the contract sum because it will not be possible. And we have written to the President to approve that if JBN Plc does not accept the N740bn, we will terminate the contract. We have terminated some of their jobs because we’ve been negotiating sometimes for 12 or 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.”
The minister harped on the need for JBN Plc to mobilise in multiple locations of the two projects to complete them in a record time.
On the Bodo-Bonny project, he said, “We don’t think we have any issue. We’ve agreed on the N280bn, which is the new contract sum that is fixed, and then for a 12-month completion period; that is an additional 12 months. So we want you to mobilise in a minimum of three locations. So that within these 12 months, we will be able to finish the job.
“In the letter to NLNG, we have to also propose 30 per cent advance payment, so that they will be able to have enough funds to mitigate inflation and any form of variation.”
