FG INJECTS N820. 9BN ON ABUJA-KADUNA-KANO ROAD/BODO-BONNY ROAD/BRIDGES REHABILITATION, TASKS J.BERGER, OTHERS ON SPEEDY PROJECT DELIVERY.
By Bala Salihu Dawakin kudu
( Northern Bureau Chief)
On October 7, 2024
The Federal Government has approved a sum of N820.87 billion for the rehabilitation of two major infrastructure projects: the Abuja-Kaduna-Zaria-Kano dual carriageway in the North-Central states of Kaduna and Kano, and the Bodo-Bonny road with bridges across the Opobo Channel in Rivers State. The contracts, awarded to Julius Berger Plc, include N740.8 billion for the northern project and N80.07 billion for the southern road.
Minister of Works, Engr. David Umahi, emphasized the need for corporate nationalism and urged contractors to consider the challenging economic conditions when negotiating project prices. He warned Julius Berger to adhere to the approved sums, stressing that further increases in the contract amount would not be accepted. The Federal Executive Council (FEC) had already approved the downward review of the projects on September 23, 2024.
The Minister urged the contractor to mobilize resources across multiple project sections to complete the Abuja-Kaduna-Zaria-Kano road in 14 months, while the Bodo-Bonny road should be completed within 12 months. The government remains firm on project timelines and cost controls to mitigate inflation and ensure timely completion.
The Federal Government has approved the total sum of N820,873,565,749,713.38 made up of: N80,076,361,036.13 and N740,797,204,713. 25, for the rehabilitation of the 82-km of the Abuja-Kaduna-Zaria-Kano dual carriageway in North-Central States of Kaduna, and Kano States on one hand and in the South-South flank of Bodo-Bonny road with bridges across the Opobo Channel, in Rivers State in another hand.
While tasking Julius Berger Plc on quality and speedy delivery of the 2 regional projects, the Minister of Works, Engr. David Umahi, emphatically urged contractors handling federal government projects to demonstrate high level of corporate national because of the economic phase the country is navigating through.
The Special Adviser on Media and Corporate Strategy to Minister of Works, Barr. Orji Uchenna Orji, in a statement made available to EXTRAORDINAIRENEWS.COM, said the Minister was represented at the meeting with held with the contractor by its Director, Projects, Engr. Banjamin Bott and the Head of Contract Management, Omonigho Brown, over the weekend at the Ministry’s Headquarters Mabushi, in Abuja.
The Minister, recalled that the Federal Executive Council (FEC) at its meeting of 23rd September, approved the 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.
According to him: “The two regional projects amounted 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 therefore 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.
He said: “Then we have section II, which is 82 kilometers 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 kilometers.”
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 in view of the economic reality of the time.
He added: “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 President Bola Tinubu for approval and 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.” He further said, “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.”
He harped on the need for JBN Plc to mobilize in multiple locations of the two projects so as to complete them on a record time. On the Bodo-Bonny project, he 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 mobilize 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 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.”
