The Federal Government has terminated the contract award of the second runway at the Nnamdi Azikiwe International Airport, Abuja to Julius Berger Nigeria Plc. (JBN).

This follows public outrage about the contract award process and cost of construction.  The Ministry of Aviation has been directed to re-advertise the contract and ensure due process in the bidding.

The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Richard Aisuebeogun stated this in a letter titled; Termination of Contract For The Design and Construction of 2nd Runway for the Nnamdi Azikiwe International Airport, Abuja.

The letter was  addressed to the Managing Director of Julius Berger Nigeria (JBN) dated 1^st June  2010, and referred to  the contract dated February 2010 executed between JBN and  FAAN for the design and construction of the second runway for the Nnamdi Azikiwe International Airport.

Mr. Aisuebeogun disclosed that he was  directed to refer to Article 15.5 of the aforementioned contract and convey the notice of termination of the contract by FAAN.

He noted that the termination takes effect after 28 days of service of the notice and he attached the original copies of the advanced payment guarantees and performance bond from Zenith and Union Banks respectively.
The original contract which generated so much outcry was initially awarded at the cost of ₦63.6 billion ($423million).
It was thereafter reviewed downwards and re-awarded by the Federal Government at the cost of ₦49.6 billion based on the recommendation of the Presidential Project Assessment Committee.

The Federal House of Representatives Committee on Aviation however rejected the downward review on the ground that the House was still deliberating on the matter, while the Senate recommended that the contract be outright canceled on the grounds that that similar projects elsewhere in the world over cost far less.

They stated specifically that airports of the same capacity including runways cost below ₦40billion