FG: We’ll save N640bn through termination of Julius Berger’s contract

Minister of Works, Engr Dave Umahi, has stated that the decision to revoke the Abuja-Kaduna-Zaria-Kano road from Julius Berger will save the Federal Government over N640 billion. He stated this when he appeared before the House of Representatives Adhoc Committee. Recall that the road contract awarded to Julius Berger was terminated recently because the contractor […]

Minister of Works, Engr Dave Umahi, has stated that the decision to revoke the Abuja-Kaduna-Zaria-Kano road from Julius Berger will save the Federal Government over N640 billion.

He stated this when he appeared before the House of Representatives Adhoc Committee.

Recall that the road contract awarded to Julius Berger was terminated recently because the contractor reportedly failed to abide by the terms of the contract.

Umahi said the contract would be re-awarded for a concrete road which he said would save the Federal Government over N640 billion from the N1.5 trillion demanded by Julius Berger as a result of variation.

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He also said the road would be of better quality and would be done in record time.

The Minister informed the Committee that he was displeased with the way the project was handled for about seven years.

He said, “By my engagement of my approach, I saved the nation N640 billion from Julius Berger. If we had accepted to do the job for N1.5 trillion. Now we are not, we are saving the country over N640 billion. And we are improving on the architecture of the road.

“The problem of Berger is not just a problem of cost. We said in our conditions for acceptance that this project must be completed in 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.

“It is within my right to determine choice of pavements. When you compare the cost we are in safe haven. Leave the concrete, it is my baby. It’s cheaper to use concrete and we are putting additional job of solar light and CCTV.

“We were in negotiation with Berger for 14 months. it is within my right to terminate the job and we followed due process. I am happy the road was terminated from Berger.

“We had cases of kidnap on the road due to the condition of the road. We begged them to fix the potholes but they refused. Sections of the road were bad but they refused to do it.”

He also noted that, it would not be unethical to give the contract to Berger again because the contract would be thrown open for all to bid and Berger could still bid for the project if it wanted.

The Committee Chairman, Rep. Aminu Sani Jaji, said the Committee observed some discrepancies in the figures for the project presented by the Ministry and the contractor.

He therefore directed that the Ministry to provide all relevant documents related to the project.