Engr. Dave Umahi, Minister of Works, has claimed that the contractor in charge of the Abuja-Kaduna Road is demanding N1.35 trillion to construct the road, up from the N165 billion previously approved.
Engr. Dave Umahi made the announcement during a meeting with Ministry Directors in Abuja, where he highlighted that the contracts’ pricing, scope, and technical elements will be thoroughly reviewed.
Preparations for the project, he says, are underway, but money is a concern since the contractor, Julius Berger, is asking for roughly N1.3 trillion. He further stated that the project would be finished by 2024.
He stated, “We have about 1.7 kilometres left of Abuja-Kaduna in two sections. The ministry has some supervision work to be done on that road, and we will be advised on the real designs of the two sections.”
“Funding is also an issue because it is under the presidential development fund initiative gotten from looted funds. I have had to discuss with Mr. President the importance of the road for all users. But I won’t be able to go back to him until we re-scope it because the project was N165 billion before and a review brought the cost to N655 billion but today the contractor is asking for N1.35 trillion and the government cannot afford it.”
In addition, the Minister stated that he needed a 5% equity contribution or guarantee from the contractors in order to secure the commitment of those who are truly committed to the project.
Senator Umahi underlined the significance of examining current contracts, including agreements, pricing, and geotechnical studies, in order to address concerns impeding road project completion.
He said, “There is a need to review our project agreements and costs. When we give the right costing, the little resources we have will be able to go a long way towards meeting the expectations. We are to review what has been so disadvantageous to our road construction.”
The Minister promised that if the ministry received N892 billion, the money would be openly used and there would be no residual balance by December 2024.
Allub Times recalls that the Federal Government is considering working with Dangote Industries Limited for the first 40 kilometres under the Tax Credit system in order to offset the rising expenses of the Abuja-Kaduna Road project.
