FG terminates Julius Berger’s contract for Abuja-Kaduna-Zaria-Kano project citing non-compliance

The Federal Government of Nigeria, through the Ministry of Works, has ordered the evacuation of the project site for the Abuja-Kaduna-Zaria-Kano Dual Carriageway rehabilitation, effectively terminating Julius Berger’s contract for Section One of the project.

This decision follows a 14-day final termination notice issued to the contractor, indicating that no further negotiations would take place.

The ministry cited Julius Berger’s non-compliance with the revised cost, project scope, and terms, as well as a complete halt of work and refusal to remobilize to the site as reasons for the termination.

In a statement released by the Director of Press and Public Relations, Mohammed Ahmed, the ministry highlighted that months of negotiations had not yielded any significant progress.

The minister’s comments came after a management meeting at the ministry’s headquarters in Abuja.

For over a year, the Works Ministry has engaged in discussions with Julius Berger in an attempt to resolve issues surrounding the rehabilitation project, which was initially awarded in December 2017 and flagged off in June 2018 during former President Muhammadu Buhari’s administration.

While the Kaduna-Zaria section of the road has been completed and the Zaria-Kano section is nearing completion, the Abuja-Kaduna segment has only achieved 27% progress over the past six years.

Recently, Minister of Works David Umahi accused Julius Berger of “playing politics” with the project to undermine the current administration’s credibility.

Despite these concerns, an agreement could not be reached, as the construction company failed to attend a scheduled meeting on November 4, which was meant to address ongoing issues.

The ministry’s statement outlined the termination conditions, emphasizing that the decision was made due to the contractor’s persistent failure to adhere to the revised contract terms.

The contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway was awarded to Julius Berger at an initial cost of ₦155.75 billion.

The project was divided into three sections, with Section I covering the Abuja-Kaduna route.

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Following numerous variations and changes, the current administration has sought to redesign and re-scope the project to enhance efficiency.

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In recent months, the ministry redesigned Section I to include a combination of continuously reinforced concrete and asphaltic pavement.

The first phase of this redesign, covering 38 kilometers, was awarded to Dangote Industries, while the remaining 127 kilometers stayed with Julius Berger.

Minister Umahi expressed the government’s commitment to completing the project, which is critical for connecting Abuja and the North.

A request to re-scope the project received approval from the Federal Executive Council, but the contractor failed to agree on the new terms.

On October 23, 2024, the ministry conveyed a final offer to Julius Berger, revising the contract sum from ₦797.26 billion to ₦740.79 billion.

The contractor was given seven days to accept this offer, but instead submitted a letter on October 29, proposing modifications to the engineering measurements and evaluation.

The company’s refusal to attend the scheduled meeting on November 4 ultimately led to the contract’s termination due to time lapses and non-performance.

This latest action marks the revocation of 11 contracts by Minister Umahi in a span of 16 months, reflecting a decisive move by the government to ensure the timely completion of critical infrastructure projects in Nigeria.