FG Targets Completion Of Priority Road Projects In 2021 Budget, Says Fashola
The Federal Government, on Thursday, says it targets the completion of some priority road projects especially those within the routes A1-A9 in the 2021 budget.
The Minister of Works and Housing, Babatunde Fashola stated this during the 2021 budget defence of his ministry before the House Committee on Works, in Abuja, on Thursday.
He explained that the disparity between the liabilities in unpaid certificates and the budgetary provisions over the years compels the ministry to prioritize its 2021 Capital Proposals in order to make an appreciable impact.
“The focus of the 2021 Budget Proposal of the Ministry remains the completion of some priority road projects, especially those on routes A1-A9.
“Given the wide disparity between the liabilities in unpaid certificates in the total sum of N 392, 019, 827, 093.87k and the budgetary provisions over the years, it has become imperative that the Ministry prioritised its 2021 Capital Proposals in order to make an appreciable impact within the period 2021-2023, that can be physically experienced by road users,” he said.
According to him, President Muhammadu Buhari had during the presentation of the 2021 budget proposals repeatedly emphasised the necessity to focus the budget on completion of projects.
He said the Ministry had to this end, given priority first to eighteen (18) roads/bridges projects that have already attained some appreciable physical achievement for completion within a 12-15 months period by December 2021.
Fashola further stated that among the prioritised road projects are roads and bridges that lead to ports and major agricultural hubs across the six (6) geo-political zones, pointing out that focus was also made on roads that attained seventy (70%) completion in order to achieve substantial completion levels.
Similarly, he explained that his Ministry has categorised the 711 highway projects currently being undertaken over the six geo-political zones of the country according to the funding mechanism.
He listed the funding mechanism as projects financed with Presidential Infrastructure Development Fund (PIDF), Highway Projects financed with Sovereign Sukuk Fund, Highway Projects financed under Tax Credit and Highway Projects funded from Multilateral Loans.
Speaking on the other targets for 2021, the Minister said: “The Ministry has selected two (2) roads and a bridge per zone for enhanced funding in the 2021 budget to achieve appreciable progress on the projects. Also targeted for adequate funding is the Federal Government of Nigeria (FGN) Counterpart Fund for the projects financed by the China Exim Bank.”
However, he noted that the major challenge to the ministry’s efforts towards the timely completion of projects is inadequate budgetary provision and releases for projects to sustain annual cash-flow requirement levels.
The Minister added that the additional funding from the PIDF and SUKUK Bond has helped to bring some form of funding relief in addition to the Tax Credit Scheme.
He, however, said that the Ministry’s exposure continues to expand as the roads age and deteriorate and require attention.
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