Minister of Works, Engr Dave Umahi, has said the decision to switch from using asphalt for the construction of the Abuja-Kaduna-Zaria-Kano Road to using concrete will save the Federal Government more than N640 billion.
The contract for the construction of the road which was awarded to Julius Berger was recently terminated by the minister, who accused the contractor of unethical practises and failure to abide by the terms of the project.
The Minister said when re-awarded, it would be for a concrete road.
Umahi said this when he appeared before the Ad hoc Committee to Monitor the Construction of the road, chaired by Hon Aminu Jaji.
The Minister was displeased that the project, which he said was uncompleted and shoddy, had lasted about seven years.
He said by their estimation the decision would save the Federal Government over N640 billion from the N1.5 trillion demanded by Julius Berger due to variation.
He also said the road would be of better quality and would be done in record time.
He said: “By the engagement of my approach, I saved the nation N640 billion from Julius Berger. If we had accepted to do the job for N1.5 trillion, then they would have… Now we are saving the country over N640 billion. And we are improving on the architecture of the road”.
He said they were well within their rights to terminate the contract as the problem with Julius Berger was not just about money.
He said the ministry adequately engaged the contractor on how the matter could be resolved but to no avail.
“The problem of Berger is not just a problem of cost. We said in our conditions for acceptance that this project must be completed in 14 months.
“This project is non-vary project unless the dollar goes beyond N2,000 per dollar. They refused all those conditions and they set booby traps for us”, Umahi said.
He was asked by the committee if it would not be more expensive to re-award the contract when Berger had already done some work and if it would not be more cost effective to retain the same contractor even for the concrete road project
Umahi said there was no going back on the decision as the difference between the ministry and Berger appeared irreconcilable.
He also said it would be unethical to just give the contract to Berger because the contract has to be thrown open for all to bid. He said Berger could still bid for the project if it wanted.
“We terminated the job within our rights as executive. They were fairly treated. It is within my right to determine choice of pavements.
“When you compare the cost, we are in safe haven. Leave the concrete; it is my baby. It’s cheaper to use concrete and we are putting additional job of solar light and CCTV.
“We were in negotiation with Berger for 14 months. It is within my right to terminate the job and we followed due process. I am happy the road was terminated from Berger.
“We had cases of kidnapping due to the condition of the road. We begged them to fix the potholes but they refused. Sections of the road were bad but they refused to do it”, he said.
The Committee Chairman, Jaji, directed that all relevant documents related to the project be submitted so they can be better guided in addressing the issue.
The minister was required to supply the committee contract agreement, certificate rates, evidence of payment made so far, among others.
“If certificate was raised, what was the value and the percentage of work covered. If you want a review, at what point do what the review or what point was the review done? All these are information we require”, a member of the Committee, Idris Wase, who moved the motion for the submission of documents, said.
The Chairman also observed that there appeared to be discrepancies in the figures for the project presented by the ministry and the contractor.
He said the Committee was not out to get anybody but to ensure the right thing is done in the interest of the country.
He said their mandate was to push the ministry to ensure that the job is done.
In an earlier meeting with the Committee, Julius Berger had blamed the slow work on the road on poor remuneration and policy changes.
Speaking during the interactive meeting with the Committee, the management team of the company led by Mr Benjamin Bott said they were being owed by the Federal Government.
He said at a point, the work stopped because government came with the option of concrete instead of asphalt.
He also recalled that a point, the problem of insecurity kept workers away for 11 months due to a bomb blast in Kaduna. He said their workers were attacked.
The committee had also directed the company to supply all documents related to the contract from when it was awarded till date.
