BY CHIKA OKEKE, Abuja
The Federal Government has issued a seven-day ultimatum to Julius Berger Plc over the delay in the completion of the rehabilitation of Section II of the Abuja-Kaduna-Zaria-Kano road.
To this end, the Federal Government directed the construction company to either accept or reject the approved reviewed sum of ₦740, 797,204,713.25 billion or face contract termination.
Minister of Works, Engr. Nweze David Umahi stated this on Tuesday during the courtesy visit of the new Managing Director of Julius Berger Plc, Dr. Pier Lubasch, who was accompanied by the outgoing Managing Director, Dr. Lars Richter at his office in Abuja.
Umahi warned that the Federal Government would not be held to ransom by the desire for unrealistic pricing and augmentation by contractors.
News Rider reports that the 82 kilometre Abuja -Kano project with contract No. 6350 was originally awarded to Messrs Julius Berger (Nig.) Plc in 2018.
The road project was divided into three sections for ease of construction such as Abuja - Kaduna (Section I), Kaduna - Zaria (Section II) and Zaria - Kano (Section III).
Section II is substantially completed, while Section III is at an advanced stage of completion but Section I is only about 27% completed.
The minister enjoined Julius Berger Plc. to show corporate patriotism by accepting the Federal Government’s approved reviewed total contract sum of N740 billion, adding that the contract sum rose from ₦710 billion to ₦740 billion due to the delays.
He lamented that the delay in mobilising to the site despite the approved funds by the Federal Executive Council is causing untold hardship to the road users and the Federal Government is at the receiving end of the situation.
"So, if Berger is not doing it, then let's have other people to do the job and within the time that we can control price. We have received more than 20 letters from Berger on this. It is a ping pong game from Julius Berger," he added.
Umahi was dissatisfied that Julius Berger Plc, which had been patronised by the Federal Government and sub-national governments for years, is not realistic in the contract pricing, especially at a time that Nigeria is battling with economic challenges.
He said: "This offer is not subject to any condition that is being dished out here. It's taken as given after more than 14 months. I'm sorry, I have to sound this way because there must be an end to negotiation. If anybody says there shouldn't be an end to negotiation, then that person is not a business person. If you have negotiated for 14 months without any result, you should terminate the negotiation.
"Already, a number of Berger projects have been terminated because the site has been abandoned. And we needed to do something about it because Nigerians are suffering. Nigerians are crying, and they are insulting the President. We can not allow that to be happening."
The minister reiterated the need for construction companies working with the Federal Ministry of Works to prepare to make sacrifices in terms of value for money and realistic contract pricing, so as to encourage road infrastructure revolution for the nation’s economic transformation.
He disclosed that economic transformation is a cardinal agenda of President Bola Tinubu-led Renewed Hope administration.
Dr. Pier Lubasch promised to revert as soon as possible on the issues sought to be addressed and hoped that consensus would be reached for the project to take off without further delay.
The outgoing managing director noted that the essence of the courtesy call was to introduce the new managing director of the company.
This was contained in a statement by the Special Adviser (Media) to the Minister of Works, Barr. Orji Uchenna Orji on Wednesday in Abuja.
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