Abuja-Kaduna Road: FG opts for asphalt, to save N640b

Minister of Works, Engr. Dave Umahi, has said using asphalt for the construction of the Abuja-Kaduna-Zaria-Kano road instead of concrete would save the Federal Government over N640 billion.
The contract for the construction of the road, which was awarded to Julius Berger, was recently terminated by the federal government, which accused the contractor of unethical practices and failure to abide by the terms of the project.

The minister said when re-awarded, it would be for a concrete road.

Umahi made this statement when he appeared before the Ad hoc Committee to Monitor the Construction of the road, chaired by the lawmaker representing Kaura-Namoda/Birnin Magaji Federal Constituency, Aminu Jaji.

The Minister lamented that the project had lasted about seven years.

He said, by their estimation, the decision would save the Federal Government over N640 billion from the N1.5 trillion demanded by Julius Berger due to variation.

He also said the road would be of better quality and completed in record time.

He said, “By the 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 the architecture of the road.”

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

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

“The problem with 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-varying unless the dollar goes beyond N2,000 per dollar. They refused all those conditions and set booby traps for us,” Umahi said.

When queried by the committee about whether it would not be more expensive to re-award the contract when Berger had already done some work, and whether it would not be more cost-effective to retain the same contractor 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.

The minister also said it would be unethical to just give the contract to Berger because the contract had 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 the executive. They were fairly treated. It is within my right to determine the choice of pavement. When you compare the cost, we are in a safe haven. Leave the concrete, it is my baby. It’s cheaper to use concrete and we are adding the additional work of solar lights 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 kidnapping 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, Jaji, directed that all relevant documents related to the project be submitted so they could be better guided in addressing the issue.

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

“If certificates were raised, what was the value and the percentage of work covered? If you want a review, at what point was the review done?” 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 anyone but to ensure the right thing was done in the interest of the country.

He said their mandate was to push the Ministry to ensure the job was done.
Meanwhile, in an earlier meeting with the Committee, Julius Berger blamed the slow progress on the road to policy changes.

Speaking during the interactive meeting with the Committee, the management team of the company, led by Mr. Benjamin Bott, said they were being owed by the Federal Government.
He said, at one point, work stopped because the government came with the option of concrete instead of asphalt for the construction.

He also recalled that at one point, the problem of insecurity kept workers away for 11 months due to 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 to date.