Abuja-Kaduna-Zaria-Kano Road Project: FG Gives Julius Berger Seven Days Ultimatum on Revised Sum or Have Contract Terminated
By Juliet Vincent
The Federal Government has given Julius Berger Plc a seven-day ultimatum to accept the revised N740.7 billion contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano road or face the termination of the project.
This directive was issued by the Minister of Works, Engr. David Umahi during a meeting on Wednesday with the newly appointed Managing Director of Julius Berger Plc, Dr. Pier Lubasch, in Abuja.
The minister, through a statement released by his media aide, Orji Uchenna Orji, expressed dissatisfaction with Julius Berger’s approach to contract pricing, especially amid Nigeria’s current economic challenges.
The Minister noted that Julius Berger, a longstanding beneficiary of government contracts, was now proposing prices deemed unreasonable by the federal government.
He insisted that the company must decide within a week whether to proceed with the reviewed contract price, stressing that further delays or demands for price hikes would not be entertained.
“The offer is not up for negotiation,” the minister stated. “After 14 months of discussions, this issue must come to a conclusion. If Julius Berger cannot accept the terms, we will find another contractor who can complete the project within the revised budget. The initial delay has already pushed the contract cost from N710 billion to N740 billion,” he said.
In response, Dr. Lubasch assured the minister that Julius Berger would address the concerns promptly, expressing hope that an agreement could be reached to avoid further delays in completing the critical infrastructure project.
