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‘FG Invest N2.8trn On Roads’
The Federal Government is undertaking various road projects worth N2.8trillion across the country, the Director of Highways, Planning and Development, Federal Ministry of Power, Works and Housing, Mr Chukwunwike Uzo, has said.
Uzo made this known in an interview with newsmen in Abuja, yesterday.
He said that the projects are being funded partly by proceeds of the Sukuk bond.
It would be recalled that the Federal Government had in 2017 raised N100billion from Sukuk to fund 25 selected roads projects across the six geopolitical zones of the country.
The director explained that the government is financing ongoing road projects outside the Sukuk amounting to N1.8trillion while the actual cost of the 25 Sukuk funded roads projects was N1 trillion.
“The total contract sum of all the 25 Sukuk funded road projects is about N1trillion and this means that the N100billion raised through Sukuk cannot finish the projects.
“What is happening now is that the Sukuk fund is being deployed to certain areas of the 25 roads that have been identified.
“This means that on a 100 kilometer road, for instance, it could be five or 10 km that the Sukuk allocation for that specific project could address and not the entire dualisation work.
“If you add up N1.8trillion costs of other projects outside Sukuk, it will come up to N2.8trillion projects being undertaken by the ministry,” he said.
He said N57billion had been disbursed to contractors handling the Sukuk funded road projects out of the N100billion raised.
Uzo said the outstanding N47billion would be disbursed based on work done by the contractors.
“The money is there, if the contractors had completed their work, we would have exhausted the N100billion by now.”
The director said the Sukuk fund, raised from the capital market had certain rules guiding its disbursement.
He said the fund had trustees who oversee its disbursement on behalf of the investors and project monitoring consultants working for the trustees to evaluate the quantum of work being done.
“For each payment certificate, those project monitoring consultants have to jointly go with the ministry supervising staff and the contractors to measure and agree on the amount of work done.
“Then quantify it in terms of monitoring certification before sending it to the ministry and then to the Debt Management Office, so it is not like a normal capital allocation from the Federation Account,” he added.
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