Monday, December 16, 2024
HomeGovernanceFG Switches to Concrete for Abuja-Kano Road, Saving N640bn Amid Contract Termination...

FG Switches to Concrete for Abuja-Kano Road, Saving N640bn Amid Contract Termination with Julius Berger

The Minister of Works, Engineer Dave Umahi, has announced the Federal Government’s decision to switch from asphalt to concrete for the construction of the Abuja-Kaduna-Zaria-Kano road, a move projected to save over N640 billion.

Umahi disclosed this during a session with the Ad-hoc Committee monitoring the multi-billion-naira project, chaired by Hon. Aminu Jaji. The initial contract, awarded to Julius Berger and reviewed to N740 billion, was terminated by the government over allegations of unethical practices and failure to meet project terms.

A termination letter signed by the Director of Legal Services, Federal Ministry of Works, C.O Assam, cited Julius Berger’s uncooperative behavior and delays as reasons for the cancellation. The Minister noted that despite seven years of work, the project remained incomplete and substandard.

Explaining the cost-saving potential of the switch to concrete, Umahi stated, “We are saving the country over N640 billion by rejecting Julius Berger’s demand for N1.5 trillion. Concrete roads are not only cheaper but also durable and faster to construct.”

He emphasized the government’s commitment to transparency, saying, “The new contract will be open for competitive bidding, and Julius Berger is welcome to participate if they meet the requirements.”

Umahi also highlighted that the decision aligns with the government’s responsibility to address the road’s deteriorating condition, which has contributed to kidnappings and insecurity.

Meanwhile, Julius Berger blamed delays on policy shifts, insecurity, and unpaid government debts. The company’s management, led by Mr. Benjamin Bott, revealed that work was halted for 11 months due to a bomb blast in Kaduna that endangered their workers.

The committee, led by Hon. Jaji, has requested all relevant documents from both the Ministry and Julius Berger to address discrepancies in the project’s cost and progress. Hon. Jaji assured that the committee’s focus is ensuring the project is completed in the nation’s best interest.

Hobnob News will continue to follow developments on this critical infrastructure project.

 

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