The Federal Government has terminated the contract awarded to Julius Berger for the rehabilitation of the Abuja-Kaduna road due to non-compliance with the reviewed cost, scope, and terms.
According to Mohammed Ahmed, Director of Press at the Ministry of Works, the termination was also based on the company’s stoppage of work and refusal to remobilize to the site.
“The company was summoned for a meeting with the Management of the Ministry, today, 4th November, 2024 but refused to show up, hence the termination of the contract based on effluxion of time and non-performance.
“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,” Ahmed stated on Monday.
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The contract, which was awarded in 2017, was initially valued at N155.7 billion but was revised to N797.2 billion and later increased to N1.5 trillion.
The Federal Executive Council (FEC) had approved a downward review of the contract sum to N740.7 billion, but Julius Berger failed to agree to the terms.
The Minister of Works, Dave Umahi, had earlier stated that the Abuja-Kano road project received approval for N740 billion.
The termination of the contract may delay the completion of the Abuja-Kaduna-Zaria-Kano dual carriageway, a vital artery connecting Abuja to the North.
