FG terminates Julius Berger’s N740bn road contract

Juliet Anine
2 Min Read

The Federal Ministry of Works has canceled its N740 billion contract with Julius Berger for part of the Abuja-Kaduna-Zaria-Kano road rehabilitation project, citing delays and non-compliance with revised terms.

This decision was announced in Abuja on Sunday.

In a statement, the Ministry’s Director of Press and Public Relations, Mohammed Ahmed, said, “Due to non-compliance with the reviewed cost, scope, and terms, and refusal to return to the site, the Federal Ministry of Works has issued a 14-day termination notice to Julius Berger for the rehabilitation of Abuja-Kaduna-Zaria-Kano dual carriageway.”

Ahmed noted the project has seen little progress over several months of discussions with the company, making the termination necessary. The original contract was awarded in December 2017, with an initial cost of about N155 billion.

While sections of the road between Kaduna-Zaria and Zaria-Kano were partially completed under former President Muhammadu Buhari, the Abuja-Kaduna section faced repeated delays.

The ministry had redesigned part of this road, approving a 38-kilometer section for concrete pavement to be handled by Dangote Industries. However, the remaining 127 kilometers stayed under Julius Berger’s contract.

In light of these challenges, Ahmed said President Bola Ahmed Tinubu’s government, under the Renewed Hope Agenda, had aimed to expedite the project to ease the difficulties faced by road users.

After a final offer with a revised contract sum of N740 billion was given to Julius Berger on October 23, the company missed the deadline and responded with a request to adjust cost details.

The Ministry then arranged a meeting with Julius Berger on November 4, but the company did not attend, leading to the contract’s termination.

 

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