The Minister of Works, Senator David Umahi, has rejected Julius Berger Plc’s proposed cost of N279 billion for the Second Niger Bridge Bypass, describing it as 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.”
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 reviewed Julius Berger Plc’s performance on all ongoing projects awarded to the company, with Umahi raising concerns over the unacceptable condition of some projects, including the Lagos-Ibadan Expressway phase 2.
He explained that the Ministry would seek selective tendering to complete the project, stating, “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 N258 billion. Since we’ve been negotiating since September 2023, we have no choice but to terminate this 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.
