FG Allocates N20 Billion Augmentation Fee to Julius Berger for Bodo-Bonny Road Construction
The Federal Government has taken significant steps to resolve the impasse with Julius Berger Plc over the construction of the N200 billion Bodo-Bonny Road in Rivers State. Following a recent meeting between the Minister of Works, Dave Umahi, and Julius Berger’s Managing Director, Dr. Lars Richter, the government has allocated an additional N20 billion augmentation fee to the construction company.
The disagreement between the government and Julius Berger arose when construction on the vital infrastructure project was halted. Minister Umahi had issued a warning last Thursday, stating that unless Julius Berger resumed work on the site within the next 14 days, the government might reconsider its contract with the company.
In response to the situation, the government proposed the allocation of an extra N20 billion to Julius Berger to mitigate the effects of current economic realities. While Minister Umahi initially expressed reluctance towards augmentation, he acknowledged the necessity during the meeting, hoping that the additional funding would alleviate the burden on the contractor and expedite the project’s progress.
The allocation of the augmentation fee marks a significant step towards resolving the construction stalemate and ensuring the timely completion of the Bodo-Bonny Road, a crucial infrastructure project with immense socio-economic implications for the region.
The Bodo-Bonny Road, upon completion, is expected to facilitate easier access to the Bonny Island, boost economic activities in the area, and improve the overall infrastructure landscape of Rivers State. With the allocation of the augmentation fee, stakeholders anticipate accelerated progress in the construction efforts, bringing relief to residents and stakeholders eagerly awaiting the project’s completion.
