Rivers State Administrator, Vice-Admiral Ibok-Ete Ibas (rtd), has firmly rejected a substantial cost variation proposed by Julius Berger Nigeria PLC, which would have raised the contract value of the Port Harcourt Ring Road project from ₦195.3 billion to ₦367.5 billion.
According to sources, Julius Berger submitted a request seeking an additional ₦171.8 billion, representing an 87.77% increase over the original contract.
Ibas reportedly dismissed the request outright, calling the figure excessive and vowing to safeguard state resources.
The 62.64km Port Harcourt Ring Road, a flagship project initiated by suspended Governor Siminalayi Fubara and flagged off by former Governor Nyesom Wike on July 19, 2023, was awarded to Julius Berger with a completion timeline of 36 months.
Designed to include six flyovers, one river-crossing bridge, and 19 roundabouts and intersections, the project had already seen ₦150 billion paid upfront, covering 77% of the original cost to avoid future variations, Wike had noted at the launch.
However, midway through the timeline, Julius Berger submitted a demand for the additional ₦171.8 billion, which would bring the total cost to ₦367,451,428,344.66.
Ibas, however, insisted the contractor adhere strictly to the original terms, highlighting that only ₦40 billion of the initial contract sum remains outstanding.
The administrator reportedly stood his ground, declaring the variation unjustifiable.
The rejection has sparked speculations, including claims that Julius Berger had pulled out of the construction site in protest over the administration’s stance.
But Ibas dismissed such reports, labeling them “misleading and malicious.”
In a statement issued by Hector Igbikiowubo, the Senior Special Adviser on Media to the Rivers State Government, Ibas criticized the narrative presented in a publication titled “Julius Berger withdraws from Rivers’ project sites”, authored by Bertram Nwannekanma.
“Nothing could be farther from the truth. The Rivers State Government has consistently and dutifully met all its contractual obligations to contractors, including Julius Berger Nigeria PLC, which has received all payments due since the declaration of Emergency Rule in the state,” the statement read.
“This baseless report is nothing more than a campaign of calumny orchestrated after failed attempts to pressure the Rivers State Government into approving an exorbitant and unjustified variation request for the ongoing Ring Road project.”
Further detailing the figures, the government reiterated:
“The original contract sum for the Ring Road project was ₦195,695,980,239.61 billion.
“Julius Berger submitted a variation request demanding an additional ₦171,755,448,105.05 billion, representing an 87.77% increase in project cost.”
“If approved, this would raise the total project cost to a staggering ₦367,451,428,344.66 billion.”
