Senator David Umahi, the Minister of Works, has dismissed Julius Berger Plc’s proposed cost of N279 billion for the Second Niger Bridge Bypass, calling it excessively high.
In a statement on Thursday, Umahi expressed his disappointment with Julius Berger’s pricing, saying, “One of the bypasses, which is 17.27 kilometres by two on asphalt, was awarded to Julius Berger. We changed the pavement elements to concrete, and the cost we calculated was N133 billion. Berger presented a figure almost twice our estimate, at N279 billion.”
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He further stated, “We disagreed with this cost during the negotiation in September 2023. We’ve decided to refer the project back to the Bureau of Public Procurement (BPP) and invite more contractors to bid because this involves public funds.”
The Federal Ministry of Works has assessed Julius Berger Plc’s performance on its current projects, with Minister David Umahi expressing concerns about the unsatisfactory condition of some, including the Lagos-Ibadan Expressway Phase 2.
Umahi noted that the Ministry plans to use selective tendering to complete the project, explaining,“We changed the pavement elements from asphalt to concrete, and the total cost we calculated based on prevailing rates is N153 billion.
However, they are proposing a cost of N258 billion. Since negotiations have been ongoing since September 2023, we have no option but to terminate the contract.
“We will then request a ‘No Objection’ from BPP for selective tendering, submitting our estimate of N153 billion and their proposal of N258 billion to BPP, while inviting other contractors to bid. This process will be concluded within the next month to ensure the project is completed promptly.”
