Section Two of the project would be presented to the Federal Executive Council for approval on Monday
In an effort to ensure that there is a higher level of accountability in the execution of projects, the Federal Government has implemented more stringent conditions for contractors who are requesting mobilization payment.
Yesterday, on Saturday, the Minister of Works, David Umahi, made the announcement that contractors would no longer be eligible to earn the customary thirty percent mobilization fee unless they had been deployed to the site and had worked there for a minimum of thirty days.
Umahi disclosed this information as he was conducting an inspection of Section One of the Abuja-Kaduna-Kano road reconstruction project. This project had been managed by Julius Berger in the past, but it was subsequently re-awarded to Infiouest Nigeria Limited.
A failure to reach an agreement on pricing variances, which the business reportedly estimated to be N1.5 trillion, was cited as the reason for the minister’s defense of the government’s decision to terminate the contract with Julius Berger.
“I am satisfied with the speed and progress of work. Infiouest has not been paid a kobo, but this is the new policy of the Ministry of Works. Once a contractor signs an agreement, they must mobilize and work for at least 30 days before receiving any mobilization fee.
It was brought to his attention that Infiouest had previously fulfilled this criteria, and that the government would now proceed with the processing of its mobilization fee.
In addition, Umahi disclosed that Section Two of the project would be presented to the Federal Executive Council for approval on Monday, despite the fact that there are ambiguities over the contractor who would be responsible for its management.
As part of the mobilization for Infiouest, the government is reportedly going to release N75 billion, which is equivalent to thirty percent of the overall cost of the project, which is N252 billion. The duration of the project is anticipated to be fourteen months.
Umahi said that thirty kilometers of Section One of the coastal highway connecting Lagos and Calabar would be finished by the month of May, while the remaining seventeen and a half kilometers are being held up due to settlements.
Umahi refuted allegations that the government was relegating Julius Berger to a secondary role, claiming that the corporation was still working on projects such as the Bodo-Bonny Road, Carter Bridge, and Idodo Bridge.
“The Procurement Act says a client may pay 30 per cent mobilisation—not shall or must. So, we decided to tweak that clause. If a contractor claims to have financial capacity during bidding, they must prove it by starting work first.
“The new Julius Berger MD understands the situation better. He knows our policies must be respected because we are engineers, and good ones at that. Berger is not out; they are still working on key projects.”
The commissioning of the Lekki Deep Seaport project, he continued, would reduce the amount of pressure that is placed on the route that connects Lagos and Sagamu.