During a recent meeting with Julius Berger (Nigeria) Plc, Minister of Works Engr. David Umahi expressed serious concerns over the ongoing contract negotiations. He met with the company’s Executive Director of Projects, Engr. Banjamin Bott, to discuss the escalating costs associated with a key road project.
Umahi revealed that the Federal Government has already disbursed N391 billion for the project. However, due to a revised estimate, the total cost could reach an additional N391 billion to complete the work. He noted that Julius Berger’s proposal to increase the project’s total cost to N1.35 trillion has raised alarms.
The road, originally contracted for N165 billion, was adjusted to N654 billion during the previous administration of President Muhammadu Buhari. Umahi made it clear that if Julius Berger refuses to accept the newly proposed price of N740 billion, the government would have no choice but to revoke the contract.
“We have communicated with the President about this matter,” he stated. “If JBN Plc does not agree to the N740 billion, we will terminate the contract. We have already ended some of their projects due to prolonged negotiations that have stretched up to 12 or 13 months. There needs to be a resolution.”
Umahi emphasized the government’s willingness to provide fresh mobilization funds to demonstrate the President’s commitment to the project. He urged Julius Berger to finalize and sign the addendum to the contract by Monday, expressing a sense of urgency to resolve the matter.
For more updates, join our WhatsApp channel: WhatsApp Channel.