FG Terminates Julius Berger’s Abuja-Kano Highway Contract

The Federal Government of Nigeria, has officially issued a letter terminating Julius Berger Plc, contract of rehabilitating section 1, the Abuja-Kaduna corridor, of the Abuja-Kaduna-Zaria-Kano Highway.

According to the letter signed C.O. Assam, Director, Legal Services of the ministry, the letter which was dated 21 November, 2024 was addressed to the Managing Director, Messrs Julius Berger PLC with the tittle, RE: REHABILITATION OF ABUJA-KADUNA-ZARIA-KANO ROAD IN THE FCT, KADUNA AND KANO STATES, CONTRACT NO. 6350.

According to a statement from the Federal Ministry of Works, this is as Julius Berger refused to accept the reviewed and approved funding for the rehabilitation of that section of the highway, after a protracted delay with negotiation and renegotiation of prices with government.

According to the ministry’s Legal Services Department, the letter which was dated 21 November, 2024 was addressed to the Managing Director, Messrs Julius Berger PLC with the tittle, RE: REHABILITATION OF ABUJA-KADUNA-ZARIA-KANO ROAD IN THE FCT, KADUNA AND KANO STATES, CONTRACT NO. 6350.

The letter recalled the approval of the Federal Executive Council, FEC, in its meeting held on 23rd September, 2024 whereby the above Contract was re-scoped and the reviewed to the sum of N740,797,204,713.25 with expected completion period of Fourteen (14) Months for the completion of the outstanding works (flexible pavement) in Section I (127KM), Section II (73.4KM) and Section III (128KM).

The letter noted that an independent, consultant, Yolas Consultants reviewed the quantities, unit rates which were presented to the Ministry which fixed the Contract Sum at N710,831,802,660.35.

It added that Julius Berger initially accepted the work items but later rescinded acceptance laying claims to astronomical increase in prices of construction materials, even as the Minister granted the upward review of the unit rates on basic items of work from N710, 831, 802, 660.35 to N740, 797, 204, 713.25 which formed the basis of the FEC approval, despite the Consultant submission.

It recalled further that the above approval was conveyed to the Company as final offer vide letter Ref. No: WR. 15022/Vol.T/304 dated 23rd October, 2024 requesting Julius Berger to indicate in writing an unconditional acceptance form otherwise of the offer within 7 days.

The company facility, however, rejected the sum of N740,797,204,713.25 and unilaterally prepared a revised BEME reducing the quantities and increasing the unit rates of work items thereby altering the work items already approved by FEC.

Upon receipt of the letter Ref. No: D12.90.1AKR.L.2024.0190 dated 29th October, 2024 the Ministry viewed the company’s alteration of the work items approved by FEC as a counter offer and therefore unacceptable.

The ministry said Julius Berger deployed its usual delay tactics to further frustrate the delivery of the project as scheduled, thereby worsening the situation of the road, causing untold hardship to commuters and other road users.

The letter read partly: “Be informed of the intention of the Federal Ministry of Works to enter upon the site and the Works and take over same from your company with effect from the date of service of the letter on your Company.

“The Engineers Representative shall upon service of this letter will arrange with Julius Berger for a joint measurement of work preparatory to taking over the site and work from your company. This is without prejudice to the exercise of other rights of the Federal government under the contract.”