This directive follows a 14-day final termination notice issued to the company on Monday, eliminating any chance for further negotiations.
The termination was attributed to the contractor's failure to comply with the revised cost, scope, and terms, as well as a halt in work and refusal to return to the site as mandated by the ministry.
The ministry highlighted that discussions had been ongoing for several months without achieving any meaningful results.
A statement from the Director of Press and Public Relations, Mohammed Ahmed, revealed this information on Monday in Abuja, emphasizing that the decision was made during a management meeting at the ministry's headquarters.
It is important to note that the Works Ministry has been engaged in continuous discussions with the company over the past 13 months to find a mutually acceptable resolution, but these efforts have been unsuccessful.
This recent action follows a previous warning from the minister regarding the potential revocation of the contract awarded to the company in 2018 during the administration of former President Muhammadu Buhari.
While the Kaduna-Zaria section has been completed and the Zaria-Kano section is nearing completion, the Abuja-Kaduna section has only achieved 27 percent progress over the past six years.
At an event two weeks ago, Umahi accused Julius Berger of politicizing the highway project to tarnish the current administration's reputation.
Despite ongoing efforts, no agreement was reached between the parties, and the construction company failed to attend the scheduled meeting on Monday.
The statement indicated, “Due to non-compliance with the revised cost, scope, and terms, work stoppage, and refusal to remobilize to the site as directed, the Federal Ministry of Works has issued a 14-day Notice of Termination to Messrs Julius Berger Plc for the Rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway in FCT, Kaduna, and Kano States, Contract No. 6350, Section I (Abuja-Kaduna), today, 4th November, 2024."
Nigerians should be informed that the contract for the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway, which was segmented into three sections, was awarded to the company on December 20, 2017. The project was officially launched by the former Minister of Power, Works and Housing, Babatunde Fashola, on June 18, 2018, with an initial budget of N155.75 billion. During the final days of former President Muhammadu Buhari's administration, Sections II (Kaduna-Zaria) and III (Zaria-Kano) were partially completed and handed over.
Since that time, the project has undergone numerous variations and augmentations. The current Minister of Works has now mandated a redesign and rescoping of Section I of the contract.
The alignment has been divided into two phases, with one phase redesigned to utilize continuously reinforced concrete pavement, while the other will employ asphaltic pavement. Approval for Section I, Phase 1, covering a length of 38 kilometers with concrete pavement, has been granted to Messrs Dangote Industries (Nig.) Ltd., while the remaining 127 kilometers will continue under the original contractor.
Phase 1 was officially launched on October 17, 2024, with a completion timeline of 14 months.
Mohammed further clarified that the Federal Executive Council approved a request to rescope the project; however, the contractor did not agree to the terms of the contract.
He stated, “In light of the contract stalemate and, most importantly, President Bola Tinubu's commitment, as outlined in the Renewed Hope Agenda infrastructure initiative, to ensure the completion of this significant project and alleviate the hardships faced by Nigerians using the road, the Ministry has re-scoped the project and secured the Federal Executive Council's approval.”
The Federal Executive Council (FEC) approved a reduction in the contract amount for the Rehabilitation of the Abuja-Kaduna-Zaria-Kano Dual Carriageway, specifically for Contract No. 6350, Section I (Abuja-Kaduna), from N797.26 billion to N740.79 billion in favor of Messrs Julius Berger Plc on September 23, 2024. This decision was formally communicated to the company on October 3, 2024.
Recognizing the road's critical socio-economic role as a key link between Abuja, the Federal Capital Territory, and the northern regions, the Ministry issued a final offer to the company regarding the Abuja-Kaduna Dual Carriageway on October 23, 2024. The company was instructed to provide written acceptance of the revised contract sum of N740.79 billion within seven days, failing which the contract would be at risk of termination.
Regrettably, instead of accepting the offer, the company chose to modify the bills of quantities and engineering measurements through a correspondence sent to the Ministry on October 29, 2024.
The company was scheduled for a meeting with the Ministry's Management on November 4, 2024, but failed to attend. Consequently, the contract was terminated due to the passage of time and lack of performance.