Minister of Works, Engr. Dave Umahi, and the Managing Director of Julius Berger Nigeria Plc, Dr. Lars Richter, have both committed to ensuring the completion of the critical Bodo-Bonny Road (BBR) project by year end. This is coming just as the minister suggested an additional N20 billion augmentation fee to the contractor to cushion the effects of current economic realities in the country.
This was part of the outcome of a meeting with contractors and the Community and Peace Committee on the project from Bonny Kingdom in Abuja on Wednesday.
Speaking at the meeting, Umahi hoped that the additional amount N20bn which he announced there and then would assuage the contractor’s burden on the project.
The minister reminded the stakeholders of the importance of the project to both the surrounding communities and the country, adding that when completed it will enhance development, even as he gave the assurance to Bonny kingdom that the project will be completed by the end of 2024.
During his presentation, the Julius Berger MD, Dr Richter drew the attention of the minister to the time lag when the contract was awarded in 2014 when the exchange rate was N305 to a dollar, adding that the cost of relevant construction materials have since risen by over 1000 per cent. Richter called for the variation of the contract which he said has become necessary in view of the declining value of the naira and rising cost of construction materials in the country.
“I thank you all for coming and for giving me this opportunity to shed more light on the project. Allow me to give you some insight from us on this project. This project was initiated in 2013 and today we are talking of 2024, which means the project is more than 11 years old. In 2014, we received the letter of award and the project couldn’t commerce. Then in 2017/2018, the NLNG stepped in with the infrastructure tax credit scheme for modalities in funding the project,” Richter said.
He said the company asked for the augmentation because as at the time the contract was drafted, it was based on the exchange rate of N305.
“And last year there were some developments in the economy which resulted to a huge change in prices of construction materials, diesel, among others. When we signed this project, we were talking of N142 per litre for diesel. But today we are buying diesel for N1500/N1600 per litre. In 2013 the price of bitumen was far cheaper than today that we buy the bitumen for N1.2 million,” he said.
The representatives of the Community and Peace Committee present at the meeting were also very much in favour of Julius Berger completing the contract and commended the company on its progress, engagement of the community and social responsibility among others since the inception of the Bonny NLNG plant and the subsequent commencement of the road project.
Leader of the Peace Committee delegates, Chief Abel Attoni, expressed gratitude over the decision to complete the Bodo-Bonny Road project even as he urged the parties to be patriotic and make the necessary sacrifice for the actualisation of the project.
One of them, King Jasper Jumbo, said, “Julius Berger used to be my biggest enemy, but with all the engagement they have been into since the Bodo-Bonny Road project began, I have loved them and their commitment to the work. The federal government should ensure Julius Berger complete the road. And I want to see the road delivered in my life time.”
The 39km-long road is the first road link between Bonny Island to the rest of Rivers State. The road has cross culverts and two mini bridges with a span of 23m each as well as two creek bridges, Afa Creek Bridge of about 530m length and Nanabie Creek Bridge of about 640m length, in addition to the construction of a major river bridge of about 750m length over the Opobo Channel.
