By Haruna Salami
The Senate Committee on Works on Tuesday directed Julius Berger Plc to complete the Odukpani-Itu-Ikot Ekpene highway and other critical national highway infrastructure under it.
Chairman of the committee, Senator Barinada Mpigi, stated this at an investigative hearing with Julius Berge’s management led by the new Managing Director (MD), Dr. Peer Lubasch.
According to Mpigi, the Red Chamber remained poised at ensuring that the infrastructural backbone of the country was strengthened.
He also pointed out the federal government’s “resolve to tackle tough and longstanding challenges: from infrastructure development to economic reform”.
Addressing the visiting team on the importance of the Odukpani-Itu-Ikot Ekpene highway, the committee chairman explained “this project, part of the larger East-West road network, is not just a critical link for the people of the Niger Delta region, but a vital artery for Nigeria’s economic vibrancy. It serves farmers, traders, transporters, and millions of everyday Nigerians who depend on it daily for their livelihoods. Delays, inefficiencies, or miscommunications on this project directly harm the people”.
Senator Mpigi’s statement read in part, “Engr. Dr. Lubasch, we are aware of your leadership transition, and while we appreciate the complexities such transitions entail, the expectations of Nigerians remain high, and rightly so. Your absence at our earlier meeting, though regrettable, is now behind us, as you have tendered a formal apology.
“I must commend you for your humility and professionalism in addressing this through your letter, which was routed through me to the President of Senate, His Excellency, Distinguished Senator (Dr.) Godswill Akpabio, GCON.
“The letter has been well received, and it represents a positive first step toward rebuilding the trust and cooperation that are critical to achieving our shared objectives.
“Let me also commend Julius Berger Nigeria Plc for its longstanding reputation for delivering quality infrastructure projects across the nation. However, with great reputation comes great responsibility.
“The concerns raised by this Committee, ranging from contract re-scoping and the choice of concrete over asphalt for road construction to the innovative use of recycled asphalt, underscore the need for transparency, efficiency, and accountability in all projects.
“Engr. Dr. Lubasch, while this session is not a witch-hunt, I must stress that this committee will not shy away from wielding the powers vested in it by the constitution to ensure accountability.
“Let me use this opportunity to issue a word of caution to all state and non-state actors who may be invited by this august body. The National Assembly is endowed with unassailable constitutional powers, and we will not hesitate to exercise them against those who disregard its authority. No individual or entity is above the law.
“As chairman of this committee, I assure you that our aim is not to disrupt progress but to facilitate it. Nigerians are counting on us to deliver results that transform their lives.
I am confident that today’s discussions will not only clear the air but also chart a path toward stronger collaboration between Julius Berger and this committee. Together, let us approach these challenges with a renewed sense of purpose, dedication, and a shared commitment to national progress”.
Earlier, the company’s MD, Lubasch, in a letter of apology to the Senate regretted the inability to honour the panel’s invitation, attributing it to a “transition” in leadership.
“On behalf of Julius Berger, I tender my sincere apologies for our absence at the earlier scheduled meetings. As stated in my letter to the Senate President, Distinguished Senator (Dr) Godswill Akpabio, GCON, and transmitted through the Chairman of this Committee, Senator Barinada Mpigi the absence was not ill-intentioned or a sign of disregard, rather the unfortunate outcome of miscommunication during my leadership transition.
“I thank the Senate in advance, for acknowledging and accepting my apology.
“If I may, I also take this moment to appreciate His Excellency, President Bola Ahmed Tinubu, GCFR for his vision and leadership.
“President Tinubu’s work towards reforming the Forex-market, improving security throughout Nigeria, increasing the minimum wage and ensuring critical infrastructure development are all much needed enablers of social and economic advancement.
“His Renewed Hope Agenda charts a path towards a more prosperous, inclusive, and developed Nigeria especially considering the infrastructure development scheme which is to stimulate the economy as a whole.
“At Julius Berger, we understand ourselves as partners in Nigeria’s progress, and we are deeply committed to supporting this administration’s aspirations for the benefit of each and every citizen.
Distinguished Senators, I understand frustrations that delays and challenges in project delivery may bring.”
Lubasch argued that the company`s “unquestionable track-record of consistent, reliable delivery of major projects since 1965 speaks to our unwavering commitment of project completion in this Nation. Our continual investment in Nigeria reinforces this commitment.
“We are cultivating a staff strength of about 10,000 across Nigeria, inclusive of close to 300 international experts providing diversity of knowledge and experience, enhancing our capabilities and technical knowhow, and at the same time supporting JBN in maintaining our standards.
“We hold about 6,500 pieces of well-maintained plant and equipment which gives us an edge to mobilize and complete projects faster and effectively. I believe this amount of plant and equipment owned by a single company is unmatched in Nigeria.
“We have permanent site installations in the West, South and Central of Nigeria providing operational advantages to mobilize quickly and deliver fast-tracked.
“We stand on a growing group of subsidiaries in Nigeria reflecting our approach to development Each entity offers added value to construction activities and the growth of industry in general.
“We have an international subsidiary in Germany, which bolsters access to technological innovation.
“At the same time, it could enable access to alternative funding options to support the development of key priority infrastructure projects and further strengthen our partnering with our clients in Nigeria.
And last, but certainly not least, being listed at the Nigerian stock exchange in Lagos underpins our transparency and integrity.”
This is even as he underscored that Julius Berger is focused on providing technical solutions, and been innovation drivers.
While maintaining that the indigenous construction giant works per global best practices and in line with the highest design and engineering standards aimed at delivering long-lasting results, the MD insisted that the company does not “compromise quality, we are ISO 9001 certified”.
“We always adhere to contracts and strive to meet agreed project schedules. The trust that our clients, communities, staff and shareholders have placed in us over the years is of utmost value to us.
“I assure you, Julius Berger is as invested in Nigeria’s development as the committee we stand before, and continue to put in place every measure to achieve progress.
“Yet at times, our progress is hindered by challenges outside our control – especially for overaged projects.
“And even more so in recent years due to market realities and pressures from the macro-economic environment. Inflation, Naira devaluation, higher interest rates and general price increases have introduced extra challenges, resulting in the need to address augmentations to the contract rates to ensure viability of projects.. again, especially for those that are overaged.
“This is also the case for the project we have been invited here to discuss, the Odukpani-Itu-Ikot Ekpene Road, where the unit rates were negotiated in 2016, but due to underfunding and serious delays in payment, the project timelines have overstretched.
“On this project specifically, for example, since 2016 to date the bitumen costs have increased by 800%, Diesel by 700%, cement by 350% and reinforcement by 600%.
“I don’t want to step into further details here as we are sure to discuss the project during the session.
“Respectfully, I close with a request to the Senate to safeguard the industry as a whole… as actually, the issues we are here to discuss are not unique to the Odukpani-Itu-Ikot Ekpene Road or to Julius Berger. Specifically it is to protect due process and adherence to contractual cooperation.
Proactive Senate intervention may resolve the challenges and send a strong signal to investors and stakeholders.
We look forward to working closely with this Committee, the Federal Ministry of Works, and other stakeholders to resolve outstanding issues and deliver progress,” he assured.
