Bodo-Bonny Road: FG Provides ₦‎20 Billion Augmentation Fee

 

FG provides Julius Berger with a N20 billion augmentation fee for the construction of the Bodo-Bonny Road

The disagreement between the federal government and Julius Berger Plc regarding the halting of construction on the N200 billion Bodo-Bonny Road in Rivers State appears to have been settled with the government offering an extra N20 billion payment to the company.

Dave Umahi, the Minister of Works, issued a warning last Thursday that the federal government may need to reconsider its contract with Julius Berger if the company does not resume work on site within the next 14 days.

The company announced in a statement that they have received an extra augmentation fee of N20 billion following a meeting between Umahi and their Managing Director, Dr. Lars Richter.

“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 statement stated