Why We Re-awarded Abuja-Kaduna-Zaria-Kano Road – Umahi

The Minister of Works, Engr Dave Umahi, has explained why the Federal Government re-awarded the Abuja-Kaduna-Zaria-Kano road contract, which was initially awarded to Julius Berger.

According to Umahi, the decision to change the asphalt pavement to concrete will save the government over N640 billion.

Umahi said this when he appeared before the Ad hoc Committee to Monitor the Construction of of the road, chaired by Hon Aminu Jaji.

The Minister stated that Julius Berger had demanded N1.5 trillion due to variations in the project, but the government was able to save N640 billion by opting for concrete pavement instead.

Umahi also noted that the concrete road will be of better quality and will be completed in record time.

The contract was initially awarded to Julius Berger, but the government terminated the contract due to allegations of unethical practices and failure to abide by the terms of the project. Umahi stated that the government was within its rights to terminate the contract and that Julius Berger was fairly treated.

The Minister also addressed concerns that re-awarding the contract would be more expensive, stating that it would be unethical to simply give the contract back to Julius Berger without opening it up to bidding. Umahi noted that Julius Berger is still eligible to bid for the project if it chooses to do so.

“The Abuja-Kaduna-Zaria-Kano road project is a critical infrastructure project that aims to improve connectivity and economic growth in the region. The project is expected to be completed by May 2025.

The Minister was displeased that the project, which he said was uncompleted and shoddy, has lasted 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, then they would have. Now we are not, we are saving the country over N640 billion. And we are improving on the architecture of the road.”

He said they were well within their rights to terminate the contract as the problem with Julius Berger was not just a problem of money.

He said that Ministry adequately engaged the contractor over how the matter could be resolved but to no avail.

“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,” Umahi said.

He was queried by the committee if it would not be more expensive to re-award the contract when Berger had already done some work and if it would not be more cost effective to retain the same contractor even for the concrete road project

Umahi said there was no going back on the decision as the difference between the Ministry and Berger appeared irreconcilable.

He also said it would be unethical to just give the contract to Berger because the contract has to be thrown open for all to bid. He said Berger could still bid for the project if it wanted.

“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 said.

The Committee Chairman, Rep Aminu Jaji, directed that all relevant documents related to the project be submitted so they can be better guided in addressing the issue.

The Minister was required to supply the committee contract agreement, certificate rates, evidence of payment made so far among others.

“If certificate was raised what was the value and the percentage of work covered. If you want a review, at what point was the review done. All these are information we require,” a member of the Committee, Idris Wase, who moved the motion for the submission of documents said.

The Chairman also observed that there appeared to be discrepancies in the figures for the project presented by the Ministry and the contractor.

He said the Committee was not out to get anybody but to ensure the right thing is done in the interest of country.

He said their mandate was to push the Ministry to ensure the job is done.

Meanwhile in an earlier meeting with the Committee, Julius Berger blamed the slow work on the road to poor and policy changes.

Speaking during the interactive meeting with the Committee, the management team of the company led by Mr Benjamin Bott said they had were being owed by the Federal Government.

He said at a point, the work stopped because government came with the option of concrete instead of asphalt for the construction.

He also recalled that a point, the problem of insecurity kept workers away for 11 months due a bomb blast in Kaduna. He said their workers were attacked.

The committee had also directed the company to supply all documents related to the contract from when it was awarded till date.

The Federal Government has finally issued a termination letter to Julius Berger Plc over the construction of the Abuja-Kaduna-Zaria-Kano road project reviewed at N740bn after a dispute over project costs and implementation.

The termination letter, signed by the Director of Legal Services, Federal Ministry of Works, C.O Assam, said the decision was in accordance with Clause 63 Standard Condition of Contract (Road Works) Volume 1, 1999 Edition, with effect from the date of service of the letter.

The letter addressed to the Managing Director of Julius Berger and dated November 21, said the contract was cancelled due to the contractor’s alleged uncooperative behaviour and repeated delays.