Rivers Administrator Ibas Rejects Julius Berger’s N368bn Project Cost Hike

According to THE NATION newspaper, Vice Admiral Ibok-Ete Ibas, the Rivers State Administrator, has rejected a proposal by construction giant Julius Berger to increase the cost of the Port Harcourt Ring Road Project from #7195.3 billion to a staggering A367.5 billion- an 87.7% hike.

Julius Berger, which began the 62.6km road project under the administration of suspended Governor Siminalayi Fubara, had earlier received ₦150 billion (about 77% of the original contract sum) at the project’s launch on July 19, 2023, flagged off by former Governor Nyesom Wike.

The project, which includes six flyovers, a river-crossing bridge, and 19 roundabouts, is scheduled for completion by July 2027.

However, midway through the project, the company submitted a variation request for an additional ₦171.8 billion, citing cost adjustments. Ibas outrightly rejected the demand, calling it unreasonable and a blatant attempt to exploit state resources.

Julius Berger must stick to the original terms of the contract,” Ibas reportedly insisted, noting that about ₦40 billion remains in outstanding payments to complete the original ₦195.3bn project.

Rumours began circulating that Julius Berger had pulled out of the site due to non-payment by the Rivers State Government. However, Ibas, in a statement through his Senior Special Adviser on Media, Hector Igbikiowubo, dismissed the claims as false, malicious, and misleading.

“The Rivers State Government has met all contractual obligations since the declaration of emergency rule in the state. The claims of contractor withdrawal are baseless and are part of a smear campaign aimed at pressuring the government into approving an unjustified cost increase,” the statement said.

Ibas reiterated his commitment to transparency and fiscal discipline, vowing to protect public funds from exploitation, even by major contractors.