The Federal Government has decided to reopen the bidding process for the Lagos-Ibadan Expressway Phase 2 project after rejecting Julius Berger Plc’s N258 billion proposal.
This decision was announced in a statement on the Ministry of Works’ official website, following a meeting held on Wednesday between the Minister of Works, David Umahi, and representatives from Julius Berger Plc at the Ministry’s Headquarters in Mabushi, Abuja.
The Ministry of Works, under Minister David Umahi, originally estimated the project cost at N153 billion after revising the plan from asphalt to concrete.
However, Despite negotiations since September 2023, an agreement could not be reached on the cost discrepancy.
To ensure the project stays on budget and is completed efficiently, the government will invite new bids. The bidding process, which will include the Ministry’s estimate and Julius Berger’s proposal, is expected to be completed within the next month.
Speaking on the Lagos-Ibadan Expressway Phase 2 project, Umahi said, “We changed the elements of the pavement from asphalt to concrete, and the total cost we came up with based on prevailing cost is N153 billion.
“But they are offering N258 billion. Since we’ve been on this since September 2023, we have no choice but to determine this contract.
“And then we ask BPP for No Objection for selective tendering, whereby we will be sending our own advice of N153 billion to BPP, and we send their own of N258 billion to BPP, and then we invite other contractors to also bid.
“This we will conclude within the next one month so that we can get that job concluded.”
More insight
The statement also provided an update on the Odukpani road project in Cross River State, where the Minister of Works, David Umahi, highlighted significant developments recently approved by the Federal Executive Council.
Umahi announced that the project budget has been increased by N36 billion, raising the total cost from N54 billion to N90 billion. This adjustment, approved just a few days ago, was deemed necessary due to a critical change in the project’s scope.
The Minister explained that the pavement material for the Odukpani road will be switched from asphalt to concrete, a decision aimed at enhancing the road’s durability and longevity.
With this change, the government expects the contractors to focus on completing one carriageway at a time, once the new terms are agreed upon. Minister Umahi emphasized that the government is eager to receive the contractor’s response to ensure the project’s timely and efficient completion.
