The Federal Government has said that it will save over N640 billion by switching from asphalt to concrete for the construction of the Abuja-Kaduna-Zaria-Kano road.
Minister of Works, Engr. Dave Umahi, revealed this during a session with the Adhoc Committee monitoring the Anuja-Kano road project, chaired by Hon. Aminu Jaji.
Umahi disclosed that the contract, initially awarded to Julius Berger Nigeria was terminated due to alleged unethical practices and failure to meet project terms.
“By my engagement and approach, I saved the nation N640 billion from Julius Berger. If we had accepted their demand of N1.5 trillion, we would have incurred unnecessary costs. Now, we are saving the country over N640 billion while improving the road’s architecture,” Umahi said.
The letter of termination, issued on November 21 by the Ministry of Works’ Director of Legal Services, C.O Assam, cited Julius Berger’s alleged uncooperative behavior, repeated delays, and refusal to complete the project within the agreed 14 months.
Bott also revealed that work stalled when the government proposed switching to concrete after initial plans for asphalt. Julius Berger claimed the Federal Government owed them substantial sums, further hampering progress.
But the Ministry of Works maintains that re-awarding the contract for concrete construction will be more cost-effective and beneficial for the nation.
Julius Berger has been directed to submit all documents related to the contract for further review.
Chairman Jaji reassured stakeholders, and said “Our mandate is to ensure the project is completed in the best interest of the country.