Bodo-Bonny Road: Umahi Goes Talk Tough, Warns Julius Berger Plc ..... Says FG Will Not Hesitate To Sanction Any Contractor

"The decision of the Julius Berger to enforce a 'force majeur' which he described as "unacceptable". Engr. Umahi.

"The Bonny-Bodo road contract which was initially awarded at the cost of N120 billion in 2015, was later varied at N199 billion with a completion dateline of December 2023, which has since elapsed."

The Minister of Works, on behalf of the Federal government on Wednesday directed ordered Julius Berger Nigeria Plc, the contractor handling the Bodo- Bonny road construction to immediately  return to site within 14 days or risk the termination of the contract.

The Minister, David Umahi stated this during a meeting with the contracting company, Nigeria Liquefied Natural Gas NLNG represented by it Deputy Managing Director, Royal Fathers from Bonny Kingdom and other members of host communities, held at the Headquarters of the Federal Ministry of Works, Abuja.

An obviously displeased Umahi, queried the decision of the Julius Berger to enforce a 'force majeur' which he described as "unacceptable".

According to Engr Umahi, "the Bonny-Bodo road contract which was initially awarded at the cost of N120 billion in 2015, was later varied at N199 billion with a completion dateline of December 2023, which has since elapsed.

The Minister of Works, while rejecting in totality the request by Julius Berger for variation, based on fluctuations in the exchange rate and the increasing cost of material, stressed that, "the federal government does not award contract based on exchange rate."

The Minister, who did not hide his displeasure pointed out that "no contractor will come to government for a downward review of the cost of any project if the exchange rate becomes one naira to one dollar", adding that "government cannot anchor contract cost based on exchange rates variations."

Senator Umahi noted that while the timelines for the completion of the project were not adhered to, maintained that if the project had been completed in December 2023, as contained in the contract agreement, issues of high exchange rate and increasing cost of materials would not have arisen.

Works Minister, Engr Umahi however promised that he would make a presentation to Mr President for a marginal augmentation to ensure that the project is completed on or before December 2024, particularly in the Spirit of the Renewed Hope Agenda and the love President Tinubu has for the Bonny Kingdom and other host communities in the Niger Delta Region.

Earlier in his presentation, the Managing Director, Julius Berger Plc Engr Dr. Lars Richter called for the variation of the contract which he said has become necessary in view of the declining value of the Naira and rising cost of construction materials in the country.

The Managing Director drew the attention of the Minister to the time lag when the contract was awarded in 2015 when the exchange rate was N305 to a dollar, adding that the cost of building materials has since risen by over 1000%.

Contributing, the Deputy Managing Director of NLNG, Olakunle Osobu pointed out that the contract which is being funded through the Tax Credit Scheme is intended to complement the Renewed Hope Agenda of the current administration. He callee on all parties to the project to remain patriotic as well as make the necessary sacrifices for the actualisation of the project.    

On their part, Roya Fathers of Host Communities led by Chief Abel Attoni, Palace Secretary, Bonny Kingdom expressed profound gratitude to President Bola Ahmed Tinubu over the decision of the Renewed Hope administration to ensure that Bodo-Bonny road is completed.

His Royal Majesty applauded the commitment of the Works Minister to the road project especially coming at a time the Nation is experiencing economic difficulties.

This was contained in a statement issued and signed by the Director, Information and and Public Relations, Ben Bem Goongs and made available to journalists.

24 April 2024