Projects worth over N125 billion have been abandoned in the oil-rich Niger Delta region following the withdrawal of Julius Berger, the largest construction company in Nigeria for over 40 years, due mainly to unfriendly environment manifesting in theft and continuing insecurity of its staff, especially expatriates.
Roads top the list of projects affected by the withdrawal as the company had been contracted to build various roads envisaged to open up more communities in Rivers, Delta, Akwa Ibom and Bayelsa states.
The construction giant shut down its operations in the Niger Delta a couple of weeks ago as an alternative to paying an alleged N32 million ransom demanded for the release of its kidnapped expatriate workers, an action that has affected on-going construction work being undertaken by the company in the region.
In Rivers State, Julius Berger, among other projects, is handling the N6.5 billion flyover bridge at the Eleme Junction, a major road intersection connecting the dual carriageway leading into the multi-billion Naira Eleme industrial zone; the East-West Road and the Port Harcourt-Aba Expressway.
The East-West Road was awarded by the former President Olusegun Obasanjo administration at the cost of over N80-billion to Julius Berger, Setraco and RCC. Julius Berger, Business Day learnt, was recommended ahead of other construction companies by the then governors of Rivers and Bayelsa states to handle the Bayelsa-Port Harcourt stretch of the East-West Road, starting from Kaiama in the Kolokuma-Opokuma local government area of Bayelsa State, to Port Harcourt in Rivers State because of the company�s expertise and vast knowledge of the Niger Delta terrain.
Similarly, the company�s withdrawal from Delta State would affect the railway line from Itakpe-Ajaokuta-Aladja; laying of gas pipelines from the Escravos Gas-to-Liquid (EGL) plant of Chevron Nigeria Limited, and their habour at the Warri Ports.
In Akwa Ibom State, the German construction firm is handling three key projects worth over N36.7 billion. Some of the projects include a new Governor�s Lodge, with an adjoining first lady�s office; a clinic and ancillary offices at the cost of N6.7 billion; the construction of the Abak-Ikot Ekpene Road worth over N0.4 billion covering 25 kilometres, and the dualisation of the Nkim Itam-Ikot Oku Ikono Road at the cost of N20.9 billion. This road covers 21 kilometres.
The company�s public affairs manager, Clement Iloba, who confirmed this to Business Day said their withdrawal from the troubled region was made inevitable bythe growing insecurity in the region and outright harassment, even kidnap of its personnel.
In Bayelsa State, a source close to Julius Caesar disclosed to Business Day in Yenagoa, the capital, that the company had concluded plans to retrench its 500 staff in the state, an allegation which the public affairs manager denied, saying “it is not true that we are retrenching our staff”.
However, according to a source, the company had sacked 100 staff and would soon lay off another 350, “as it winds down its operations in the area”.
President of Warri Chamber of Commerce, Industry, Mines and Agriculture (WACCIMA), Edema Abrakata, said in Warri that the exit of Julius Berger from the oil-rich region is a loss to the area because of the construction expertise of the company.
Abrakata who is also the president of the Delta Shippers� Council added that the Warri Ports would miss the services of Julius Berger�s facilities that were being used for the handling of large cargoes.
Industry watchers are already worried about the laying off of staff of the company, saying the development would worsen the unemployment situation in the region, leading to increased crime rate.
They appealed to authorities in charge of awarding contracts of projects that were being handled by the construction giant to shop for other companies with requisite expertise to award them to so that the development of the region would not suffer unnecessary delays.
It is speculated that the company is unlikely to resume operations soon, as the situation in the region has deteriorated with the killing of three soldiers and two civilians on transport boat from Obioku to Yenagoa and the attack on a police station, leaving an inspector dead.
On whether government intervened to forestall the company�s withdrawal from the region and abandoning their multi-billion projects, Iloba said it was government�s responsibility to say whether they were intervening or not, and declined further comment.
Security agencies are finding it difficult to tackle the issue of militancy in the Niger Delta due to the superior knowledge of the creeks by the militants.
Bayelsa State�s Peace and Conflict Resolution Committee is yet to react to the deteriorating situation in the region with the establishment of more militant camps intended to confront the military along the waterways.
There is renewed tension and it is not clear if the peace pact signed between 14 militant cells and Bayelsa State government last December is still effective.