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Julius Berger Nigeria Plc has restated its unwavering commitment to the Bodo-Bonny Road project, despite significant operational and financial challenges.
To this end, the construction giant said it remains focused on fostering constructive engagement with all stakeholders to ensure the timely and successful delivery of the project, which it acknowledged as critical to Nigeria’s economic and social advancement and a cornerstone for the long-term development and prosperity of the Niger Delta.
This was contained in a statement by Mr. Emieseifa James Agama, head, Corporate Communication, yesterday.
It read: “Julius Berger Nigeria Plc remains steadfast in its mission to deliver transformative infrastructure projects that align with Nigeria’s developmental priorities. For over 50 years, we have partnered with the Federal Government, communities, and stakeholders to deliver transformative infrastructure solutions with professionalism, transparency, and adherence to the highest standards.
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“The Bodo-Bonny Road project exemplifies our unwavering commitment to progress, despite significant operational and financial challenges. Extreme inflation, rising input costs, and FX volatility necessitated the declaration of Force Majeure and the suspension of works in November 2023. Nevertheless, Julius Berger resumed work in good faith in August 2024, five months before the formal execution of the contract, following a verbal agreement with the Federal Ministry of Works to adjust the contract value from NGN200 billion to NGN280 billion. Although inflationary pressures on materials have risen between 200 percent and 600 percent (and even higher in some cases), the relatively modest adjustment to the contract value was a welcome step. Julius Berger’s acceptance at the time reflects our commitment to addressing challenges impacting projects and fostering mutual agreements with the Federal Government to ensure their successful delivery.
“Furthermore, the absence of a tripartite funding agreement between the Federal Government, NLNG and Julius Berger continues to impact payments, requiring Julius Berger to pre-finance significant portions of the project. Despite these challenges, we have continued to make progress, including through the yuletide season, reaffirming our commitment to delivering this critical national asset.
“It is important to note that Julius Berger is the only contractor to have taken on this project in a challenging terrain previously abandoned by other contractors. Connecting Bonny Island to the mainland for the first time underscores our commitment to innovation and national development.”
