By Monday Ijeh
The Federal Government is enterprise varied highway tasks price N2.eight trillion throughout the nation, Mr Chukwunwike Uzo, the Director of Highways, Planning and Development, Federal Ministry of Power, Works and Housing, has mentioned.
Uzo made this recognized in an interview with the News Agency of Nigeria (NAN) in Abuja on Sunday.
He mentioned that the tasks are being funded partly by proceeds of the Sukuk bond.
NAN remembers that the Federal Government had in 2017 raised N100 billion from Sukuk to fund 25 chosen roads tasks throughout the six geopolitical zones of the nation.
The director defined that the federal government is financing ongoing highway tasks exterior the Sukuk amounting to N1.eight trillion whereas the precise value of the 25 Sukuk funded roads tasks was N1 trillion.
“The whole contract sum of all of the 25 Sukuk funded highway tasks is about N1 trillion and which means the N100 billion raised by Sukuk can’t end the tasks.
“What is going on now could be that the Sukuk fund is being deployed to sure areas of the 25 roads which were recognized.
“This signifies that on a 100 kilometer highway, for example, it might be 5 or 10 km that the Sukuk allocation for that particular challenge may handle and never the complete dualisation work.
“If you add up N1.8 trillion costs of other projects outside Sukuk, it will come up to N2.8 trillion projects being undertaken by the ministry,” he mentioned.
He mentioned N57 billion had been disbursed to contractors dealing with the Sukuk funded highway tasks out of the N100 billion raised.
Uzo mentioned the excellent N47 billion could be disbursed primarily based on work accomplished by the contractors.
“The money is there, if the contractors had completed their work, we would have exhausted the N100 billion by now.”
The director mentioned the Sukuk fund, raised from the capital market had sure guidelines guiding its disbursement.
He mentioned the fund had trustees who oversee its disbursement on behalf of the traders and challenge monitoring consultants working for the trustees to guage the quantum of labor being accomplished.
“For every cost certificates, these challenge monitoring consultants must collectively go together with the ministry supervising workers and the contractors to measure and agree on the quantity of labor accomplished.
“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. (NAN)