FG needs N6.26 trn to fix 711 roads in 2021 ― Fashola
The Minister of Works, Babatunde Fashola, has disclosed that said to complete 711 highway projects in 2021, his ministry will require over N6.26 trillion.
The minister said the 2021 budget provision of less than N300 billion for the projects, was a drop in the ocean.
Fashola made this known during a 2021 budget defence session before the Abubakar Bichi-led Committee on Works.
According to him, the ministry cannot accomplish all its objectives due to paucity of funds, but recommended that rather than expanding the projects being financed through Sukuk, efforts should be channelled towards the completion of the entire green network covering the four major ports, Lagos, Warri, Port Harcourt and Calabar.
He explained that out of the total sum of N227.964 billion capital allocation appropriated in the 2020 Appropriation Act, the sum of N152.150 billion has so far been released to the works and housing sector (representing 66.74%), leaving a balance of N75.814; adding that the sum of N162.559 projects were financed through Sukuk Bond.
“The sum of N77.955 billion was released to the highway (Works sector) from the budget aside the sum of N162.559 billion for the Sukuk issuance.
“The Sukuk is to be drawn down for works certified only in respect of 44 roads and bridges and the Ministry is still awaiting the payment of the first tranche of N54.8 billion is for work done as at 16/10/2020.
“The ministry is currently administering 711 number of contracts nationwide and as of 1st October, 2020the ministry has cumulative unpaid certificates in the sum of N392.020 on ongoing highway construction projects,” he noted.