Bodo-Bonny Road: FG Pays JB N20bn Augmentation Fee

The squabble between the federal government and Julius Berger Plc over the stoppage of work on the N200 billion Bodo-Bonny Road in Rivers State may have been resolved with the government’s provision of a N20 billion additional augmentation fee to the company.

Minister of Works, Engr. Dave Umahi, last Thursday, threatened to terminate the federal government’s contract with Julius Berger if the company did not return to site within 14 days.

However, the company said in a statement that they have been provided an additional N20 billion augmentation fee after a meeting between Umahi and their Managing Director, Dr. Lars Richter and that they “have both committed to ensuring the completion of the critical Bodo-Bonny Road project by year end.”

The statement said, “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.

“Umahi who was of the view that there was no need for any augmentation, hoped that the additional amount of N20 billion which he announced there and then would assuage the contractor’s burden on the project.”

The Minister, according to the statement, 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.

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%.

He called for the variation of the contract which he said