The Federal Government has terminated Julius Berger’s contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway, citing non-compliance with reviewed cost, scope, and terms.
Mohammed Ahmed, Director of Press at the Ministry of Works, announced the termination on Monday during a press briefing, stating that negotiations with Julius Berger had been ongoing for several months without significant progress.
“The company was summoned for a meeting with the Management of the Ministry on November 4, 2024, but refused to show up, hence the termination of the contract based on effluxion of time and non-performance,” Ahmed said. The contract, initially valued at N155.7 billion, was awarded to Julius Berger in 2017 and flagged off by former Minister of Power, Works and Housing, Babatunde Raji Fashola, in 2018.
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According to Ahmed, the Ministry re-scoped the project and obtained approval from the Federal Executive Council (FEC) due to the socio-economic importance of the road connecting Abuja to the North. “The award for the re-scoping and downward review of contract for the rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway was granted by FEC on September 23, 2024, and conveyed to the company on October 3, 2024,” Ahmed said.
The termination notice highlighted Julius Berger’s failure to comply with the reviewed contract sum of N740.7 billion, down from N797.2 billion. Dave Umahi, Minister of Works, previously stated that the project’s initial value was revised to N797 billion by the previous administration and further increased to N1.5 trillion.
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