The Federal Government has reopened the bidding process for Phase 2 of the Lagos-Ibadan Expressway project after rejecting Julius Berger Plc N258 billion proposal.
This decision was disclosed in a statement on the Ministry of Works’ website, following a meeting between the Minister of Works, David Umahi, and Julius Berger representatives at the Ministry’s headquarters in Mabushi, Abuja.
Originally, the Ministry, led by Minister David Umahi, estimated the project’s cost at N153 billion after revising the plan from asphalt to concrete. However, despite negotiations since September 2023, an agreement on the cost discrepancy could not be reached.
To maintain the project’s budget and ensure its timely completion, the government has decided to invite new bids.
The bidding process, which will consider both the Ministry’s estimate and Julius Berger’s proposal, is expected to be completed within a month.
Speaking on the project, Umahi said: “We changed the pavement materials from asphalt to concrete, and the total cost we calculated, based on current prices, is N153 billion. But Julius Berger has offered N258 billion. Since negotiations have been ongoing since September 2023 without a resolution, we have no option but to terminate this contract.
“We will then seek No Objection from the Bureau of Public Procurement (BPP) for selective tendering. We will present our estimate of N153 billion and their offer of N258 billion to the BPP and invite other contractors to bid. This process will be concluded within the next month to expedite the project’s completion.”
The statement also provided an update on the Odukpani road project in Cross River State.
Umahi highlighted significant developments recently approved by the Federal Executive Council.
The project’s budget has been increased by N36 billion, raising the total cost from N54 billion to N90 billion.
This adjustment, approved just days ago, was necessitated by a crucial change in the project’s scope.
The Minister explained that the pavement material for the Odukpani road would be changed from asphalt to concrete to enhance the road’s durability and longevity.
With this change, the government expects contractors to focus on completing one carriageway at a time, following the agreement on the new terms.
The Minister emphasized the government’s eagerness to receive the contractor’s response to ensure the project’s timely and efficient completion.
