FG Terminates Julius Berger’s Abuja-Kaduna Road Contract Over Non-Performance

The Federal Government has officially terminated Julius Berger’s contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, Section One, due to continued non-compliance with project terms and ongoing delays.

On Monday, November 4, 2024, the Ministry of Works issued a 14-day termination notice, following multiple attempts to resolve issues related to cost, scope, and project progress.

The marks the end of an extended negotiation process that has spanned over 13 months without significant advancement.

The termination follows a long-standing stalemate with the company, which was contracted in 2018 under the administration of former President Muhammadu Buhari.

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Despite completing the Kaduna-Zaria and Zaria-Kano sections, the Abuja-Kaduna stretch has made only 27% progress in six years.

The Works Ministry has repeatedly expressed frustration with the company’s slow pace and lack of remobilization to the site.

The Ministry’s Director of Press and Public Relations, Mohammed Ahmed, confirmed the decision, stating that the contract was awarded to Julius Berger in December 2017 at an initial cost of N155.75 billion.

Subsequent negotiations for a cost review were initiated, but the company failed to sign off on the revised terms, including a new budget of N740.79 billion.

In a statement, Ahmed said, “Due to non-compliance with the reviewed contract cost, scope, and terms, and the company’s failure to resume work despite repeated directives, the Ministry has issued a final notice of termination.”

This decision follows remarks by Works Minister, David Umahi, who last week accused Julius Berger of playing politics with the project to undermine the current administration.

The company’s refusal to attend a scheduled meeting with the Ministry on November 4 sealed the contract’s fate.

The Abuja-Kaduna highway is a critical transport route, and the government has emphasized its importance to national infrastructure.

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In October, the Ministry announced that Dangote Industries would handle part of the project, specifically the 38 kilometers of concrete pavement in Phase 1, with the remaining stretch assigned to Julius Berger under the revised terms.

The Works Ministry is determined to push forward with the completion of the Abuja-Kaduna section, as part of President Bola Tinubu’s infrastructure renewal agenda.