After rejecting Julius Berger’s proposal for the Lagos-Ibadan Expressway Phase 2 project, the federal government has decided to reopen the bidding process. This announcement was made by the Ministry of Works through a statement on its official website, following a meeting between both parties at the ministry’s headquarters in Abuja.
The ministry’s calculations estimate the project’s cost at N153 billion. This increase is attributed to the change from asphalt to concrete paving. Despite ongoing discussions since October 2023, the parties could not reach an agreement due to discrepancies in cost estimates. Consequently, the government will solicit additional bids, with both the ministry’s and Julius Berger’s estimates to be finalized within the next month.
The Minister of Works provided insights into the situation, stating: “We changed the pavement material from asphalt to concrete, resulting in an estimated cost of N153 billion based on current rates. However, Julius Berger’s proposal is for N258 billion. Given that negotiations have been ongoing since September 2023, we have no choice but to terminate this contract. We will seek the BPP’s approval for selective tendering, presenting both our estimate and theirs, and inviting other contractors to submit bids. We aim to conclude this process within the next month to finalize the project.”
The statement also addressed other projects, including the Odukpani road project in Cross River State. The minister noted significant developments, including the Federal Executive Council’s approval. The project’s cost has increased by N36 billion, raising the total from N54 billion to N90 billion. The switch from asphalt to concrete is expected to enhance the road’s longevity and durability. The government anticipates that contractors will focus on completing one carriageway at a time, once new terms are agreed upon. Minister Umahi emphasized the government’s eagerness to receive contractor responses to ensure timely and efficient project completion.
