FG gives Julius Berger ultimatum on Abuja-Kaduna-Kano road
The federal government has issued a seven-day ultimatum to Julius Berger Plc to accept the N740.7 billion contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano road or face revocation of the contract. The Minister of Works, Engr. Nweze David gave the ultimatum Wednesday, during a meeting with the newly appointed Managing Director of Julius Berger Plc, […]
The federal government has issued a seven-day ultimatum to Julius Berger Plc to accept the N740.7 billion contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano road or face revocation of the contract.
The Minister of Works, Engr. Nweze David gave the ultimatum Wednesday, during a meeting with the newly appointed Managing Director of Julius Berger Plc, Dr. Pier Lubasch, in Abuja.
According to a statement by Umahi’s media aide, Orji Uchenna Orji, the minister expressed disappointment with Julius Berger’s stance on the contract pricing, particularly given the ongoing economic challenges in Nigeria.
Umahi emphasised that the company has been a long-term beneficiary of government contracts but is now proposing unrealistic prices, which the government finds unacceptable.
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He insisted that the contractor must decide within seven days whether to accept the reviewed contract amount, stating that the federal government would not tolerate demands for further price increases or delays.
“This offer is not subject to any condition. After 14 months of negotiations, there must be an end. If Julius Berger is unwilling to proceed, we will find another contractor to execute the job within a manageable budget. The delays have already caused the contract price to increase from N710 billion to N740 billion,” Umahi said.
In response, Dr Lubasch assured the minister that the company would address the concerns as quickly as possible and expressed hope that a consensus would be reached to prevent further delays in the project.