The proposed cost of N279bn for the Second Niger Bridge Bypass by Julius Berger Plc is excessively high, the Federal Government has declared, rejecting the proposal.
It declared this through the Minister of Works, Senator David Umahi, as contained in a statement issued by the Federal Ministry of Works 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 N133bn. Berger presented a figure almost twice our estimate, at N279bn.”
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 and invite more contractors to bid because this involves public funds.”
The ministry reviewed Julius Berger Plc’s performance on all ongoing projects awarded to the company. At the review, Umahi raised 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 N153bn.
“However, they are proposing N258bn. 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 N153bn and their proposal of N258bn to BPP, while inviting other contractors to bid. This process will be concluded within the next month to ensure the project is completed promptly.”
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