Speaking during the meeting, the Honourable Minister stated that the Federal Executive Council (FEC) at its meeting of 23rd September, 2024 approved the re-scoping and downward review of the contract for the rehabilitation of the Abuja – Kaduna – Zaria – Kano Dual Carriageway in the FCT, Kaduna and Kano States, contract No. 6350 and the revised estimated total cost / augmentation of the contract for the construction of Bodo-Bonny road with bridges across the Opobo channel, route 430 in Rivers State, contract No. 6247, amounting to a total contract sum of Seven Hundred and Forty Billion, Seven Hundred and Ninety-Seven Million, Two Hundred and Four Thousand, Seven Hundred and Thirteen Naira, Twenty Five Kobo (N740,797,204,713. 25) and Eighty Billion, Seventy Six Million , Three Hundred and Sixty One Thousand, Thirty Six Naira, Thirteen Kobo (N80,076,361,036.13), and tasked the contractors handling Federal Government's projects on the need for corporate nationalism in price negotiation in the face of the daunting economic challenges facing Nigeria. He said “Then we have section II, which is 82 kilometers by two, which is the section that JBN Plc is working on. And so, if you check what FEC approved on 23rd of September, FEC had approved that the total contract sum within the scope of Berger would be N740 billion, which means that if you remove N391 billion paid already, you now have about N340 billion remaining, which is the scope of their work for the 164 kilometers.” He urged the contractor to mobilize in the four sections of the Abuja - Zaria - Kaduna - Kano project to finish the job within 14 months.
Engr. Umahi noted that the prices given on the said projects were the best in view of the economic reality of the time. He added, “So we are appealing to you not to try to increase the contract sum, because it will not be possible. And we have written to the President to approve that if JBN Plc does not accept the N740 billion, we will terminate the contract. We have terminated some of their jobs because we've been negotiating sometimes 12 months, 13 months. There must be an end to negotiation." He further said, “We are ready to pay you (JBN Plc) even fresh mobilisation, just to underscore the interest of the President on this project. So we are appealing and begging you that by Monday, you should be able to sign the addendum to the contract.”
He harped on the need for JBN Plc to mobilize in multiple locations of the two projects so as to complete them on a record time. On the Bodo-Bonny project, he said “We don't think we have any issue. We've agreed on the N280 billion, which is the new contract sum that is fixed, and then for a 12- month completion period; that is an additional 12 months. So we want you to mobilize in a minimum of three locations. So that within these 12 months, we'll be able to finish the job.” He went further to state, “In the letter to NLNG, we have to also propose 30% advance payment, so that they will be able to have enough funds to mitigate inflation and any form of variation.”
The meeting ended with a formal handover of the Letters of Award in respect of the reviewed approved projects contract sums to Julius Berger (Plc), which terms contain inter alia: “that the contract is fixed,firm,non-transferable and deemed duly terminated by effluxion of time, unless otherwise formally reviewed by the Ministry.
Hon. Barr. Orji Uchenna Orji
Special Adviser (Media) to the Honourable Minister of Works.
O6/10/2024
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