FG Approves N820bn for rehabilitation of Abuja-Kaduna, Bodo-Bonny roads

October 7, 2024
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Engr. DAVE UMAHI, Minister of Works

The Federal Government has approved N820 billion for the rehabilitation of the Abuja-Kaduna-Zaria-Kano dual carriageway and the Bodo-Bonny road, including bridges across the Opobo Channel. This information was shared by Orji Orji, Special Adviser (Media) to the Minister of Works, on Sunday.

The statement highlighted the government’s directive to Julius Berger (Nig.) Plc to expedite the rehabilitation of the 82km Section II of the Abuja-Kaduna-Zaria-Kano dual carriageway, which spans the FCT, Kaduna, and Kano states, as well as the construction of the Bodo-Bonny road and associated bridges in Rivers State.

During a meeting on September 23, 2024, the Federal Executive Council approved a re-scoping and downward review of the contract for the rehabilitation project, with a revised estimated total of approximately N740.8 billion for the dual carriageway and N80.1 billion for the Bodo-Bonny road.

The minister emphasized the importance of corporate nationalism in price negotiations amid Nigeria’s economic challenges. He detailed that Julius Berger is responsible for Section II of the project, noting that with N391 billion already paid, around N340 billion remains for the work on the 164km stretch.

He urged the contractor to mobilize efforts across the four sections of the Abuja-Kaduna-Zaria-Kano project to complete it within 14 months. The minister reiterated that the agreed-upon prices are aligned with current economic realities and urged the contractor not to seek to increase the contract amount.

“We have communicated to the President that if Julius Berger does not accept the N740 billion, we will terminate the contract,” he said, adding that previous negotiations had extended for 12 to 13 months. “There must be a resolution.”

He also expressed willingness to provide fresh mobilization funds to demonstrate the President’s commitment to the project and urged the contractor to sign the addendum to the contract promptly.

Regarding the Bodo-Bonny project, the minister mentioned an agreement on a new fixed contract sum of N280 billion with a completion period of 12 months, requesting the contractor to mobilize in at least three locations to facilitate timely completion. He indicated that a letter to NLNG will propose a 30% advance payment to help mitigate inflation and other potential variations.

 

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