The Federal Government of Nigeria has announced that it will save an estimated N640 billion by terminating the contract with construction giant Julius Berger.
The contract, which was for the construction of the Abuja-Kaduna-Zaria-Kano road, was recently revoked due to the contractor's failure to adhere to the agreed terms.
The Minister of Works, Engr. Dave Umahi, disclosed this information during his appearance before the House of Representatives Adhoc Committee. He explained that the decision to terminate the contract was made after careful consideration of the project's progress and financial implications. "By my engagement of my approach, I saved the nation N640 billion from Julius Berger," Umahi stated. "We wouldn’t if we had accepted to do the job for N1.5 trillion."
Umahi further elaborated on the reasons behind the termination, highlighting issues such as the contractor's refusal to comply with specific conditions, including the completion timeline of 14 months. "This project is non-vary project unless the dollar goes beyond N2000 per dollar.
They refused all those conditions and they set booby traps for us. We terminated the job within our rights as executive. They were fairly treated," he added.
The Minister emphasized that the government plans to re-award the contract for a concrete road, which promises better quality and faster execution. "Leave the concrete, it is my baby. It’s cheaper to use concrete and we are putting additional job of solar light and CCTV," Umahi noted.
He also addressed concerns about potential ethical issues in re-awarding the contract to Julius Berger, stating that the bidding process would be open to all interested parties, allowing Julius Berger to participate if they choose.
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