FG to save N640b by terminating Julius Berger’s contract – Umahi

The Minister of Works, Engr Dave Umahi, has revealed that the Federal Government will save N640 billion by terminating Julius Berger’s contract to construct the Abuja-Kaduna-Zaria-Kano road.

Umahi made this known when he appeared before the House of Representatives Adhoc Committee.

He explained that the road project awarded to Julius Berger was terminated recently after the contractor failed to abide by the terms of the contract.

Umahi said that the contract would be re-awarded for a concrete road which would be of better quality and would be executed in record time.

The Minister also told the committee that he was not happy with the way the road project was handled for about seven years.

“By my engagement of my approach, I saved the nation N640 billion from Julius Berger. We wouldn’t if we had accepted to do the job for N1.5 trillion,” Umahi said.

“Now we are not, we are saving the country over N640 billion and we are improving on the architecture of the road.

“The problem of 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-vary project unless the dollar goes beyond N2000 per dollar. They refused all those conditions and they set booby traps for us. We terminated the job within our rights as executive. They were fairly treated.”

Umahi said it is within his right to determine the choice of pavements, explaining that when the FG compares the cost, they are in safe haven.

“Leave the concrete, it is my baby. It’s cheaper to use concrete and we are putting additional job of solar light and CCTV,” the minister said.

“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 kidnap 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.”

According to Umahi, it would not be unethical to award the contract to Julius Berger again because it would be thrown open for all to bid and Berger could still bid for the project if it choses to.