A final seven-day ultimatum has been issued to Julius Berger to accept the Federal Government’s offer of N740.79bn for the completion of the 82km section II of the Abuja-Kaduna-Zaria-Kano road or risk termination of the contract.
The Minister of Works, David Umahi, who gave the ultimatum expressed frustration at the prolonged negotiations, insisting that the project must be resolved within the next seven days.
He issued the warning when the new Managing Director of Julius Berger Plc, Dr Pier Lubasch, paid a courtesy visit to the Minister accompanied by the outgoing Managing Director, Dr Lars Richter, at the Ministry Headquarters in Abuja.
In a statement by the Special Adviser on Media to the Minister, Orji Uchenna, noted that the visit was to introduce the new executive officer to the Minister.
During the meeting, Umahi stated concern over the delay in mobilising to the site, despite the Federal Executive Council having approved the funds.
He stressed that the delay is causing significant hardship for road users and reflects poorly on the government.
Umahi expressed disappointment that Julius Berger, a company that has long benefited from government support, is not being realistic with its contract pricing, especially given the nation’s current economic challenges.
He urged the contractor to accept or reject the revised contract sum within seven days, warning that the contract would be revoked if they failed to comply.
Responding, the new Managing Director of Julius Berger promised to revert on the issues raised and hoped for a swift resolution to avoid further delays.
While the Kaduna-Zaria section has been completed and the Zaria-Kano section is near completion, the Abuja-Kaduna segment has only reached 27% progress in six years.