The Federal Government, through the Minister of Works, Senator David Umahi, has rejected Julius Berger Plc’s proposed cost of N279 billion for the construction of the Second Niger Bridge Bypass, deeming it excessively high.
In a statement released on Thursday, Senator Umahi expressed disappointment with the construction giant’s pricing, highlighting that the original government estimate for the 17.27-kilometer dual carriageway was N133 billion.
“Julius Berger presented a figure almost twice our estimate, at N279 billion,” Umahi remarked, pointing out that the company’s proposal significantly exceeded the Ministry’s calculations.
Umahi further revealed that the Ministry of Works had decided to refer the project back to the Bureau of Public Procurement (BPP) and invite more contractors to bid.
“This involves public funds, and we must ensure transparency and value for money,” the Minister emphasized.
The Ministry also reviewed Julius Berger Plc’s performance on other ongoing projects, including the Lagos-Ibadan Expressway phase 2, raising concerns over the condition of some of these projects.
According to Umahi, “We changed the pavement elements from asphalt to concrete, and our revised estimate is N153 billion. However, Julius Berger’s proposal was N258 billion, which is unacceptable.”
With negotiations ongoing since September 2023, the Ministry has decided to terminate the existing contract with Julius Berger for this project.
The Federal Government will now seek a ‘No Objection’ from the BPP to proceed with selective tendering. The revised estimate of N153 billion and Julius Berger’s N258 billion proposal will be submitted to the BPP, and other contractors will be invited to bid.
The tendering process is expected to conclude within the next month to ensure the timely completion of the Second Niger Bridge Bypass.
