Inadequate Budgetary Provision Affecting Infrastructure Project -Fashola

The Minister of Works and Housing, Babatunde Fashola, has attributed the delay in project delivery across the country to inadequate budgetary provisions and delay in the release of funds.

Fashola, during the defense of his Ministry’s proposals in the 2021 budget; said that although funds from the Presidential Infrastructure Development Fund and SUKUK Bond had helped to bring some funding relief, the ministry’s exposure had continued to expand due to annual addition of new projects.

He said, “Inadequate budgetary provisions had stalled the projects which the Ministry started since 2018/2019, the 17.35 percent cut in the 2020 Budget made it impossible to pay Contractors who were being owed N3.31bn while the money required to fix the remainder is N3.54bn.

“The Federal Government will focus on the completion of ongoing road and bridge projects in the country rather than beginning new ones, in the implementation of the 2021 Budget”.

According to him, the categories of road and bridge projects on which the Ministry will focus for completion during the budget year include those that have attained 70 percent completion.

He added that subject to the availability of funds, such projects would be completed as early as possible.

“Roads whose completion would be prioritized during the budget year include those categorized as A1-A9, 18 of such road projects which have reached appreciable level of completion have been identified across the country for completion within 12 to 15 months Minister said.

The Minister explained that roads and bridges, leading to the ports and major agricultural hubs across the six geopolitical zones of the country would be prioritised in line with the mandate of President Buhari to focus the Budget on completion of projects.

He added, “The Ministry would also focus on the maintenance of about 50 Bridges nationwide as a measure to avoid further deterioration of critical structures.”

Pointing out that some bridges which connect several geopolitical zones and Federal roads had not been maintained for several years before this administration, he stressed that some of the bridges required replacement of expansion joints and hand rails while others required major underwater repairs of exposed piles, pile caps and piers.

He said, “Bridges like the Third Mainland Bridge, the Koton Karfe Bridge and the Makurdi Bridge are part of about 50 bridges being rehabilitated simultaneously among others.

“The Ministry also had its focus on the completion of the construction of Chanchangi Bridge along Takum-Wukari Road in Taraba State and Ikom Bridge along Calabar-Ikom Road”.

Speaking further, Fashola stressed on the need for the support of the National Assembly in realizing the stated objectives, putting the estimated cost of rehabilitating all the bridges at N80.98bn.

“We are mindful of the limitation of resources but the frequency of these natural disasters caused by Climate Change and aging infrastructure must compel us to think of making provisions for emergencies.

“The international Best Practice for such Emergencies is between five and ten percent of the Capital Budget,” he added.

He said although the sum provided for Highway projects in the 2021 Budget was an improvement over the 2020 Budget provision for the Sector, it was still inadequate to address the funding challenges of Highway projects.

Fashola pointed out that with about N1.2trn as the year 2021 projected cash flow requirement, funding for works planned to be executed on the projects in 2021 would have to be “efficiently optimized”.

Fashola said in order for his Ministry to make significant impact on the improvement of the Federal road network and boost the nation’s economy, there was urgent need to enhance the release of funds for the projects under the Amended 2020 Budget.

On why the SUKUK could not be expanded to fund other road projects as a means of overcoming the problem of inadequate funding, he explained that at every issuance there was a specific amount which the Government could withdraw adding that no money would be left as reserve SUKUK fund.

The Minister of State, Abubakar Aliyu, explained that the seeming delay in the completion of some of the road projects in the North East was as a result of security challenges citing the Yobe-Maiduguri Road where insurgents attacked the CCECC and burnt their equipment.