By Mashe Umaru Gwamna
The Minister of Works, David Umahi has categorically informed Julius Berger company handling Bonny-Bodo Road project,
that the federal government doesn’t award contracts based on exchange rate .
He said their company’s request for variations on the 82% completed project are unacceptable.
“Under his watch he will not sign contract variations based on foreign exchange rates.
“My ministry has stopped payment of VOPs unless directed by the President”.
Umahi made the disclosure during a meeting with the handlers of the road project, Julius Berger PLC , as well as representatives of Nigeria Liquefied Natural Gas NLNG and Royal Fathers from Bonny Kingdom and other members of host communities in Abuja yesterday.
The Minister emphasized that government is willing to provide N20b out of the N28b the contractor is requesting, while giving the project a finish timeline of end of the year.
“If the contractor does not accept the government offer by Friday and resume work on the site, the previously expired 14-day ultimatum for their return will be enforced.
According to the Minister, the Bonny-Bodo road contract which was initially awarded at the cost of N120 billion in 2015, was later varied at N199 billion with a completion dateline of December 2023, which has since elapsed.
The Minister deplored the unilateral stoppage of work by Julius’ Berger, describing the action as unacceptable.
While rejecting in total, Julius Berger’s request for variation based on fluctuations in exchange rate and increasing cost of material, the Minister said government does not award contract based on exchange rate.
He pointed out that no contractor will come to government for a downward review of the cost of any project if the exchange rate becomes one naira to one dollar, adding that government cannot anchor contract cost based on exchange rates variations.
He was particularly unhappy that the timelines for the completion of the project were not adhered to, maintaining that if the project were completed in December 2023, as contained in the contract agreement , issues of high exchange rate and increasing cost of materials would not have arisen ‘
The Minister also addressed the Niger Delta traditional rulers’ concerns about the project’s completion, he assured them that terminating the contract would not compromise the quality or timeline of the project.
