FG needs N921.4 billion to complete 195 ongoing road projects
The Federal Government is in need of a whooping sum of N921.4 billion to complete about 195 ongoing road projects across the country, the Minister of Works, Mike Onolememen disclosed today.
Fielding questions from journalists at the State House, after the weekly Federal Executive Council (FEC), Mr Onolememen who briefed alongside the Minister of Information Labaran Maku, said the total portfolio size of all ongoing road projects is about N1.39 trillion and the ministry's annual budgetary provision could not finance the projects.
According to him, if government were to depend solely on the annual budget, it will take another eight years before the projects can be completed.
The minister stated that to ensure timely completion of all the projects, a multilateral approach was under way as well as a Public Private Partnership (PPP) scheme that will add about 6,000 kilometers of road nationwide is being explored.
"As at the turn of the century that is 2001, the federal ministry of works has grossed up a project portfolio in the six geo political zones of the country to the tune of about N1.397 trillion. And the break down of that portfolio shows that 31 ongoing projects by the federal ministry works are in the north central zones, covering a total length of 1,054 kilometers at the total sum of N262.3 billion.
"The north east has a total of 30 ongoing projects covering a total of about 1,461 kilometer at the contract sum of N332.9 billion. The north west has a total of 23 ongoing projects covering a total of about 1,028 kilometer at the contract sum of N255.5 billion.
"The south east has a total of 40 ongoing projects covering a total of about 978 kilometer at the contract sum of N149.6 billion. The south south has a total of 34 ongoing projects covering a total of about 876 kilometer at the contract sum of N159.4 billion. The south west has a total of 37 ongoing projects covering a total of about 1,230 kilometer at the contract sum of N236.9 billion.
"Out of this total portfolio size of ongoing project that has been put at N1.397 trillion, a total of about N523.6 billion has been certified and only about N475.5 billion has been paid, leaving a balance of about N921.4 billion of that portfolio. Which means that cumulatively unto the time that portfolio is completed we will be requiring about N921.4 billion to complete all the over 195 ongoing projects in the country" the minister said.
Reviewing the 2012 performance of the ministry Onolememen said "the ministry received a total capital budgetary provision of about N143,592,745,847 for the ministry's capital projects. Out of that N101 billion was released and cash backed. Out of the N111 billion, a total of N110,194,309674 was expended on capital projects".
The Minister also announced that so fsaid he ministry ha recieved N85.5 billion from the Subsidy Reinvestment and Empowerment Programme, SURE-P adding that six projects were currently being funded with the SURE-P money accruing to the ministry, including the Lokoja- Abaji-Abuja road.
Expressing delight at the support that the ministry has enjoyed from the President he enthused " In the last two years, the road sector has received direct attention from Mr President".
In his contribution, the Minister of State for Works, Bashiru Yuguda, disclosed that the ministry no longer paid contractors on presentation of certificate but on completion of a section of the road project stating that "this is what we have done to make sure we get value for our money".
The Minister of Information, Labaran Maku, describing the 2012 performance report of the ministry of works as presented by the minister said it was "heartwarming". He added that Council expressed satisfaction with it saying "this nation can be sure that the federal ministry of works is moving ahead to deliver major roads in the country".
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