News

August 9, 2024

Road projects: FG opens talks with Julius Berger

David Umahi

•Carter bridge, Lagos-Ibadan, Abuja-Kaduna-Zaria-Kano Roads top list

By John Alechenu

The Federal Ministry of Works has opened discussions with Julius Berger Nigeria PLC over delays being observed on its multi-billion naira critical road projects scattered across the country.

The Minister of Works, Engr. David Umahi, had on a number of occasions, admitted that price differentials and poor funding were largely to blame for this situation, adding a number of the projects were inherited.

In keeping with the directive of the Federal Executive Council, FEC, with respect to all inherited and new projects being handled by a number of multinational companies, the ministry yesterday opened discussions with Julius Berger Plc.

According to the Minister’s Special Adviser (Media), Barr. Orji Uchenna Orji, in Abuja, the discussion was designed  to help appraise their performance and take decisions on funding and milestones completion of all such awarded projects, as part of the measures to mitigate the sufferings of road users at this moment of economic challenges.

The statement read:  “He (Umahi), decried the unacceptable conditions of some of the inherited and new projects of all ongoing federal roads awarded to Julius Berger Plc, which are within  the economic corridor of the nation and which were being delayed due to issues of price differentials or lack of effective funding.“

He listed the projects affected to include: the 82km by 2 dualization of section of Abuja-Kaduna- Zaria- Kano Highway currently handled by Julius Berger; phase 2 of Lagos-Ibadan expressway, which pavement elements  had been changed from asphalt to concrete; section 2A bypass at the 2nd Niger Bridge which pavement element was changed to concrete; the Bodo-Bonny road funded  by NLNG Tax Credit; the under  deck structural works at 3rd Mainland bridge, Iddo bridge and Carter bridge.”

According to him, the minister urged  the contractor to be open to a mutually  agreed modality for milestone execution and funding of the projects at reviewed rates as may be agreed upon and approved  by Federal Executive Council, FEC.

Umahi said:  ” Our job is to develop this mechanism based on FEC directives, and engage with the minister of finance and coordinating minister of the economy, and finally, we take our recommendations back to the President and, of course, FEC for consideration.

“On the section of Abuja Kaduna- Zaria-Kano road agreed to be handled by Julius Berger Plc, the minister commended the quality of work being done but directed the contractor to stick to one carriageway at a time within the scope and conclude their works.

The contractor was further directed to, within three weeks, fill the two carriageways with stone base and level it to alleviate the sufferings of road users.

“We agreed that this project, within their own corridor, will last for 14 months. Project execution should be deployed in four sections, and we’ll be paying Berger ?20 billion every month to get the job completed,” Umahi stated.

On the Lagos-Ibadan expressway, phase 2, Umahi said the ministry  had no choice but to determine  the contract and ask Bureau of Public Procurement, BPP, for  ”No Objection” for selective tendering.

He recalled:  “We changed the elements of the pavement from asphalt to concrete, and the total cost we came up with, based on prevailing cost is ?153 billion.  But they are offering ?258 billion.

”Having 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 ?153 billion to BPP, and we send their own of ?258 billion to BPP, and then we invite other contractors to also bid.  This we will conclude within the next one month, so we can get that job concluded.”

On the Second Niger Bridge Bypass handled by Julius Berger Plc, he said:  “One of the bypasses, which is 17.27 kilometers by two on asphalt, was awarded to Julius Berger. We changed the pavement elements to concrete and the cost that we came up with was N133 billion. Berger almost gave us more than twice our cost, which is N279 billion.

“We have disagreed with this cost at the time of negotiation since September 2023. We’ve also decided to get the project back to BPP and invite more contractors to bid because this is public fund.”

On Bodo-Bonny project being funded by NLNG tax credit, Umahi expressed concerns that the company, though had mobilized to site after additional cost of N80 billon was approved for the work, was working at a very slow pace, according to reports.

He expressed worry that they came up with a longer timeline of 16 months within which  to deliver the project, against the December 2024 deadline proposed by the ministry.

“Finally, we agreed on an additional cost of N80 billion, which will bring the project to about N280 billion fixed and non-varying with the unit rates agreed, and we agreed that this project will not increase in cost beyond ?280 billion,” Umahi said.

He urged the contractor to shift ground to a shorter timeline for the sake of the people. Concerning the under deck structural works at 3rd Mainland bridge, Iddo bridge, Carter bridge in Lagos State, Umahi  commended  the contractor for  doing a fantastic job.

He said: “We have no problems on pricing. We’ve paid 30% due to the intervention of the President. They’re working, and we’ve directed that each time they put a certificate and we still have funds, we will pay within seven days because this job they’re doing is very critical.

“For the 53 years those bridges were constructed, no maintenance took place and the deterioration is so horrible and frightening. Right now, we’ve closed the 3rd Mainland Bridge against big ttrucks.”