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The Federal Government has approved over N840billion for the rehabilitation of the 82-Km Section II of the Abuja-Kaduna-Zaria-Kano Dual Carriageway which traverses the Federal Capital Territory, Kaduna and Kano states.
The money also includes funds for the construction of the Bodo-Bonny road with bridges across the Opobo Channel, Route 430 in Rivers State.
Minister of Works David Umahi disclosed this at a meeting with representatives of the main contractor, Julius Berger (Nigeria) Plc, in Abuja.
In the statement signed by the Minister’s Special Adviser (Media), Hon. Orji Uchenna Orji, on Sunday, Umahi charged the contractor to fast-track the completion of the projects because of the premium placed on them by President Bola Tinubu as well as Nigerians plying it.
Julius Berger (Nigeria) Plc was represented at the meeting by its Executive Director, Projects, Benjamin Bott and the Head of Contract Management, Omonigho Brown.
While speaking during the meeting, Umahi explained that the Federal Executive Council (FEC) at its meeting of 23rd September 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.
He also said the FEC approved 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 Seven Hundred and Forty Billion, Seven Hundred and Ninety-Seven Million, Two Hundred and Four Thousand, Seven Hundred and Thirteen Naira, Twenty-Five Kobo (N740,797,204,713. 25) and Eighty Billion, Seventy Six Million , Three Hundred and Sixty-One Thousand, Thirty-Six Naira, Thirteen Kobo (N80,076,361,036.13).
He tasked the contractors handling Federal Government’s projects on the need for corporate nationalism in price negotiation in the face of the daunting economic challenges facing Nigeria.
Umahi said, “Then we have section II, which is 82 kilometres by two, which is the section that JBN Plc is working on. And so, if you check what FEC approved on 23rd of September, FEC had approved that the total contract sum within the scope of Berger would be N740 billion, which means that if you remove N391 billion paid already, you now have about N340 billion remaining, which is the scope of their work for the 164 kilometre.”
He urged the contractor to mobilise in the four sections of the Abuja-Zaria-Kaduna-Kano project to finish the job within 14 months.
The Minister noted that the inflation rate and the current economic situation was taken into consideration before arriving at the decision.
Umahi noted, “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 N740 billion, we will terminate the contract. We have terminated some of their jobs because we’ve been negotiating sometimes 12 months, 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 in this project. So we are appealing and begging you that by Monday, you should be able to sign the addendum to the contract.”
He harped on the need for JBN Plc to mobilise in multiple locations of the two projects so as to complete them in a record time.
On the Bodo-Bonny project, Umahi said, “We don’t think we have any issue. We’ve agreed on the N280 billion, 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’ll be able to finish the job."
He went further to state, “In the letter to NLNG, we have to also propose 30% advance payment, so that they will be able to have enough funds to mitigate inflation and any form of variation.”
The meeting ended with a formal handover of the Letters of Award in respect of the reviewed approved projects contract sums to Julius Berger (Plc), which terms contain inter alia: “That the contract is fixed, firm, non-transferable and deemed duly terminated by effluxion of time, unless otherwise formally reviewed by the Ministry.”
