Umahi Raises Concerns Over Price Discrepancies In Road Projects

Umahi Raises Concerns Over Price Discrepancies In Road Projects....KINDLY READ THE FULL STORY HERE▶

Minister of Works, Engr. David Umahi, has directed Julius Berger, a leading construction firm, to expedite the completion of ongoing road projects across Nigeria…….. CONTINUE READING

Umahi’s directive follows a Federal Executive Council meeting addressing delays in various projects managed by multinational companies due to price differentials and funding issues. The Federal Ministry of Works has begun detailed discussions with Julius Berger to evaluate performance, funding, and completion milestones for both inherited and new projects.

In a statement issued on Thursday by his Special Adviser on Media, Uchenna Orji, Umahi emphasized the Ministry’s focus on price control, contractor commitment, value for money, and uniform pricing. He criticized the poor conditions of several key federal road projects and the delays caused by financial and pricing discrepancies.

The affected projects include:

– The 82km dualization of a section of the Abuja-Kaduna-Zaria-Kano Highway
– Phase 2 of the Lagos-Ibadan Expressway, where pavement elements were changed from asphalt to concrete
– Section 2A of the bypass at the 2nd Niger Bridge, also with changed pavement elements
– The Bodo-Bonny Road, funded by NLNG Tax Credit
– Underdeck structural works at the 3rd Mainland Bridge, Iddo Bridge, and Carter Bridge

Umahi urged Julius Berger to agree to a mutually accepted plan for milestone execution and funding at revised rates. He noted that the Abuja-Kaduna-Zaria-Kano project, which is expected to take 14 months, will see payments of N20 billion monthly.

For the Lagos-Ibadan Expressway Phase 2, Umahi stated that the Ministry might terminate the contract due to cost discrepancies. The revised cost is N153 billion, while Julius Berger’s estimate is N258 billion. The Ministry will seek selective tendering through the Bureau of Public Procurement (BPP) to resolve this issue.

Similarly, for the Second Niger Bridge Bypass, the Ministry is challenging Julius Berger’s inflated cost estimate of N279 billion, compared to the expected N133 billion. This project will also be subject to a new bidding process.

Regarding the Bodo-Bonny project, Umahi acknowledged an approved additional cost of N80 billion, bringing the total fixed cost to N280 billion, which is the maximum allowable amount.

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