Rivers State: Why Julius Berger Is Withdrawing From Project Sites

Following shortfalls in periodical project cost payment which have stopped being made, leading construction company, Julius Berger Nigeria PLC has announced its withdrawal of its services from some of its project sites.

A report in the Niger Delta Insider newspaper quoted an insider at Julius Berger Nigeria Plc as saying that the company has “reportedly withdrawn from several major project sites across Rivers State”.

The report linked the development to the failure of the appointed Sole Administrator to continue funding ongoing projects despite receiving regular federal allocations and substantial internally generated revenue (IGR).

The report further revealed that many of the company’s workers have been placed on standby, with operations stalled across multiple locations pending further directives.

This was as it was also gathered the periodical monthly payment for the contracts fell due, but that efforts to collect payments have continued to fail as the key aides to the Sole Administrator usually fail to make any useful commitment.

The development, it was gathered is causing many indigenes of areas of operation of the construction company to become agitated and concern over what the future holds for them.

Forefront News also confirmed from a dependable source the reduction of site workers by Julius Berger for the same reason.

The source said; “Tthere is a particular project site on the ongoing Port Harcourt Ring Road project. Where they had 800 workers on site, only a few; less than 300 hundred people were seen working last week Thursday”.

Similarly, some of the company’s project sites visited over the weekend, confirmed the foregoing development.

Specifically, at the Ring Road project site, only a handful of workers were seen compared to the hitherto nonstop activities while at the Emohua axis of the state where the Buguma-Degema Road project had peaked, no work is seen going on there.

One of the workers who was affected by the staff downsizing by the company, said that on this Emohua with all the landmark projects going on, we have already completed about 30% while we have completed over 60% of the work on the long Ring Road project.

He said; “But now, we are told to return home to stand by until they get payment from the government. We even hear that if no payment is made by the end of June, the company will demobilise from site.

“That means the entire Rivers state will become one huge chaotic site with abandoned projects all over; the result will be restiveness and crime as the projects helped, we the indigenes with jobs and kept us gainfully busy,” he said.

In 2023, Julius Berger Nigeria Plc and the Rivers State Government signed a N195 billion contract for the construction of the Port Harcourt Ring Road which is expected to link no fewer than five Local Government Areas in the state.

During the contract-signing ceremony at the Executive Council Chambers of Government House in Port Harcourt, the State Governor, Sir Siminalayi Fubara, was full of commendation for the construction company, saying that the fact that Julius Berger has its successful professional imprint on every landmark project in the state, qualifies the company to get the fresh contract.

While flagging off the project, Rivers State Governor, Siminalayi Fubara, who is currently on suspension, awarded the 19.7 km Kalabari Road Project to Julius Berger last year, and did not mince words in revealing that his administration had paid 30 percent of the project cost.

Fubara had said; “This is to enable you understand how we feel and how we value the Kalabari people; and the contractor has assured us, it will do a good job, and I believe that before the 15 months are over, life will be different here.

“Issues of criminality along the bad section of the road will be a thing of the past, and other positive developments will also come into your kingdom,” he stressed.

Efforts by Forefront News to get the management of Julius Berger to comment on the development did not yield positive result as on official at the Regional office in Port Harcourt was willing to comment on the matter.