Accept reviewed N740bn road projects or risk revocation, FG warns Julius Berger
3 min read
By Chris Ochayi
ABUJA: The Federal Government has asked Julius Berger Nig PLC to accept the reviewed contract sum of ₦740, 797,204,713.25
for the completion of the rehabilitation of section II of the Abuja-Kaduna-Zaria-Kano road projects or risk revocation.
The government which warned of possible determination of the contract , noted that it can not be held to ransom by the desire for unrealistic pricing and augmentation by contractors.
Minister of Works, Engr David Umahi,made the threat while receiving the new Managing Director of Julius Berger Plc, Dr. Pier Lubasch, who paid him a courtesy visit in his office in Abuja.
Engr. Umahi noted that “This offer is not subject to any condition. It’s 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.”
He however urged the contract to show corporate patriotism by accepting the Federal Government’s approved reviewed total contract sum for the completion of the rehabilitation project.
The Minister lamented that the delay in mobilizing to the site despite the approved funds by the Federal Executive Council is causing untold hardship to the road users and that the Federal Government is at the receiving end of the situation.
He ssid, “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’ve had more than 20 letters from Berger on this. It is a ping pong game from Julius Berger.
“The prices rose from ₦710 billion to ₦740 billion because of these delays. And if we continue the delays, it is the problem of the Ministry of Works.”
Engr. Umahi expressed dismay that Julius Berger Plc, which has had years of patronage by Federal Government and sub-national governments, is not realistic in the contract pricing, especially at this time of Nigeria’s economic challenges.
While welcoming the new Managing Director of Julius Berger Plc, 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.
This he said is to encourage the much needed road infrastructure revolution for the nation’s economic transformation which is a cardinal agenda of the Renewed Hope administration of the President of the Federal Republic of Nigeria, *His Excellency, President Bola Ahmed Tinubu, GCFR*
He said, “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 new Managing Director 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, however, noted that the essence of the courtesy call to the Honourable Minister of Works was to introduce the new Managing Director of the company.
