The Federal government through the Ministry of Works has announced the termination of the N740 billion contract with Julius Berger for Section I (Abuja-Kaduna) of the Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna, and Kano States.
In a statement from the Ministry, it explained that the decision was based on non-compliance with reviewed cost, scope, and terms, stoppage of work, and refusal to remobilise to site.
According to the Ministry, the decision was reached at a Management meeting after several months of ongoing discussions that yielded no meaningful progress.
It noted that over the past 13 months, the Ministry has been in constant talks with the company in an effort to reach an amicable agreement on the alignment, but these efforts have been unsuccessful.
The statement reads, “Based on non-compliance with reviewed cost, scope, and terms, stoppage of work and refusal to remobilise to site, as directed, the Federal Ministry of Works has issued a 14-day Notice of Termination to Messrs Julius Berger (Nig.) Plc for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna and Kano States, Contract No.6350, Section I (Abuja-Kaduna), today, 4th November, 2024.”
“The decision, which is borne out of several months of going back and forth without any meaningful progress was reached at a Management meeting of the Ministry.”
What you should know
Nairametrics had earlier reported the Ministry of Works giving Julius Berger a seven-day ultimatum to accept the Federal Government’s offer of N740.79 billion for the completion of the 82km Section II of the road.
- In September, the Federal Executive Council (FEC) approved a downward revision of the Abuja-Kaduna-Zaria-Kano road rehabilitation project, reducing the cost to N740.79 billion.
- Originally approved by former President Muhammadu Buhari’s administration in 2017, the project began in May 2018 and was awarded to Julius Berger to improve transportation across Abuja, Niger, Kaduna, and Kano states, as well as to facilitate the movement of agricultural produce from the North.
- Despite projections by former Minister of Works Babatunde Fashola that the project would be completed by 2023, it remained unfinished by the end of the Buhari administration.
- Current Minister of Works, Dave Umahi, later revealed that the previous government had left behind a debt of N1.5 trillion for ongoing road projects, including the Abuja-Kano reconstruction. In early 2024, the Federal Government allocated additional funding, releasing N17 billion and preparing another N33 billion to support the project’s continuation.
