The federal government announced plans to cancel Julius Berger’s N740 billion segment of the Abuja-Kaduna highway contract due to the company’s repeated increases in the contract value, now demanding N903 billion.
This decision follows nearly six years since the contract was awarded, during which parts of the highway have become challenging for travelers, raising concerns about the project’s progress and management, according to Arise News.
The Abuja-Kaduna highway contract was awarded on December 20, 2018, alongside the Kaduna-Zaria and Zaria-Kano sections, with an initial completion timeline of three years.
Originally set at N155 billion, the cost was reviewed to N642.2 billion in 2021. Now, the situation has escalated, with Julius Berger demanding N903 billion, leading to the government’s decision to consider canceling the contract.
In January, Minister of Works David Umahi revealed that Julius Berger requested an increase in the project cost to N1.35 trillion, an amount the government found unaffordable.
During the recent inauguration of highway rehabilitation, Umahi accused the contractor of politicizing the project, noting that while Julius Berger sought around N1.5 trillion, the Federal Executive Council had recently reviewed the contract to N740 billion.
He said, “Berger said to do this entire job it needs N1.5 trillion. We started negotiation since September last year, writing letters every week. Eventually, we told them that despite the ones they are requesting, it will still take them four years to complete as there have been traffic jam and kidnapping on the road.
“We presented the option of balkanising the road into three which the President approved. When we did that, Berger accepted the rate. But we did not know they were playing games by continuing to play delay tactics and at that time their side was N710 billion, both completed and those to be done.
“Later, they came back that they wanted an increase to N740 billion. We went to FEC and they gave approval, only for them last week to say they need another increase to N903 billion,” Umahi lamented.
The Minister emphasized that the government would not increase the contract value any further after the recent review.
He stated that if Julius Berger does not accept the new conditions, the government would be compelled to revoke the contract.
“Even if we accept it, other contractors will want the same and it will increase the project to about N4 billion per kilometre which is on asphalt. Our position is that we are not increasing this project for Julius Berger beyond N740 billion. The game is over.
“ If they are not doing it, we will give it those that will do it on the same quality of the coaster road at a cheaper rate. They have put the project into politics, so they are using it to de-market our administration and we say enough is enough,” Umahi added.
Umahi noted that the 375 km dualized road will be extended by an additional 7.5 kilometers in Kogi and Kano States.
