The projected N279 billion costs for the Second Niger Bridge Bypass by Julius Berger Plc has been rejected by Senator David Umahi, Minister of Works, who deemed it to be unduly exorbitant.
Umahi highlighted his displeasure with Julius Berger’s pricing in a statement on Thursday, adding,
“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 N133 billion. Berger presented a figure almost twice our estimate, at N279 billion.”
He added, “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 (BPP) and invite more contractors to bid because this involves public funds.”
After reviewing Julius Berger Plc’s performance on all ongoing projects that the company has been given, the Federal Ministry of Works expressed alarm to Umahi about the unsatisfactory state of certain projects, such as phase 2 of the Lagos-Ibadan Motorway.
He clarified that in order to finish the project, the Ministry would look to choose tenders, saying, “We changed the pavement elements from asphalt to concrete, and the total cost we calculated based on prevailing rates is N153 billion.
“We will then request a ‘No Objection’ from BPP for selective tendering, submitting our estimate of N153 billion and their proposal of N258 billion to BPP, while inviting other contractors to bid. This process will be concluded within the next month to ensure the project is completed promptly.”
