The Federal Government has offered an additional N20.5bn to the contractor constructing the 35.7km Bodo-Bonny Road and Bridge projects in Rivers State, to complete the project or risk termination.
This is just as the government set December 2024 as the new deadline to complete the project.
The Minister of Works, David Umahi made the offer on Wednesday during a meeting with contractors and the peace committee on the project from Bonny Kingdom in Abuja.
The project, which was awarded through a partnership agreement in 2017 between the ministry and Nigeria LNG Limited to Julius Berger at the cost of N120.6bn, was slated to be funded 50 per cent by Nigeria LNG Limited.
The 39 km long road is the first road link between Bonny Island to the rest of Rivers State.
However, a force majeur declared by the company due to the dwindling exchange rate stalled the progress of the project even after the ministry ordered the company back to the site last year December.
The construction company had demanded an additional N28.8bn to construct the remaining section of the 39 km road which is 84 per cent completed.
But in a meeting at the ministry headquarters, Umahi stated that if the contractor does not accept the Federal Government’s offer by Friday and resume work on the site, the previously expired 14-day ultimatum for their return will be enforced.
While cautioning that no contractor has the authority to dictate terms to the Federal Government on a contract that has already been agreed upon by both parties, the minister stressed that his stance was grounded in the legal requirement for both parties to review the contract terms before signing it.
“The government is willing to provide N20bn out of the N28bn the contractor is requesting.
“No contractor will dictate for me. If you don’t like the offer, you walk away. I will not sign any contract based on the exchange rate. We should have respect for our currency. A contract that was signed in naira cannot be implemented in dollars. It will be in naira. Julius Berger stopped work without giving a grace period. That’s a breach of contract. You cannot just bring receipts and expect the minister to be paying. Even a madman has some period of sanity. ”
“I am making an offer to pay N20.5bn out of the N28bn and we still have to seek presidential approval on this. The company would have to state through a letter if they accept but by Friday, if I don’t get anything we would return to our standing which involves termination of contract.
“Our position is very simple, we reject the conditions of Julius Berger totally and we ask Berger to please go back to the site to complete the project based on our offer. Our offer is unconditional and we say, accept or reject, so you cannot subject our offer to your conditions.
“Berger should note that our 14-day termination ultimatum has gone and we will make a proposal if you do not agree with this,” he warned.
Before agreeing to pay N20bn out of the N28b requested by Julius Berger for project variations, Umahi had maintained that the ministry would only allocate N13.8b, resulting in an N15b disparity.
The minister cautioned Julius Berger to learn to demonstrate humility in its dealings with the client (Federal government) but also show solidarity during economic difficulties, considering the substantial benefits it had received during the country’s prosperous economic times.
The 39km long road, has cross culverts and two mini bridges with a span of 23m each as well as two creek bridges, Afa Creek Bridge of about 530m length and Nanabie Creek Bridge of about 640m length, in addition to the construction of a major river bridge of about 750m length over the Opobo Channel.
The minister also cautioned Julius Berger to learn to demonstrate humility in its dealings with its clients and also show solidarity during economic difficulties, considering the substantial benefits it had received during the country’s prosperous economic times.
He said the ministry under his watch will not sign contract variations based on foreign exchange rates and will not make payment on variations unless directed by the President.