The Hon. Minister of Power, Works and Housing has reported that of the 2017 budget, his ministry has achieved 71.58% implementation as at December, 2017.
According to press release from the ministry, Fashola, who stated this recently while defending the 2018 budget proposal before the Senate Committee told Members of the Committee that based on all the payments made to contractors for all the works done since the commencement of the projects to date, the current Budget Performance for the second release of the Budget year now stood at 71.58 per cent.
Speaking further on the report which was applauded by the members of the committee, Fashola said “As I said in my introductory remarks, as at December 2017, we could only report what we had paid for, which was a lot less than the work that had actually been done; because the releases that we had for first release under 2017, was made in August 2017 and it was for N57Billion as you could see. So it was not until December 2017 that we got the second allocation of N120Billion and we also got some disbursements from the SUKUK in the sum of N57Billion.
“Now, based on some payments that have been made between December 2017 and now (January 17th 2018), after the second release came to hand, we have paid out N57Billion as I said in the first release, N57.4Billion also released under the SUKUK and N120Billion, and that is what has taken the Budget Performance up from 15.3 per cent in Q1 to 71.58 per cent as at today”.
“.He added that the Overhead Costs of the Ministry and its Parastatals currently stood at 62 per cent while the Personnel Cost which, according to him, was being implemented would be reported through the Office of the Accountant General of the Federation.
The Minister reiterated that the 2017 Budget was in the sum of N586.535Billion for the Ministry of Power, Works and Housing and its parastatals.
Responding to questions from members, especially on the status of roads in the 2017 Budget which were not awarded in the Budget year, Fashola reiterated his earlier call for a bulk amount to be provided in the annual budget to fund roads adding that it would make for the continuous funding of the roads not awarded during the budget year.
According to the Minister, this would also solve the recurring problem of a project meant for one annual budget reappearing in the budget for the following year or being abandoned, adding that the present process whereby the Procurement Law stipulates a process that takes up to six months as well as other processes involved before the award of a contract was responsible for the aforementioned situation.
Commenting on the budget performance, Chairman of the Committee Senator Kabir Gaya, commended the Minister for the performance saying in the history of budget performance in the country in the last ten years there has not been such achievement.
Most of the Committee members agreed that although the idea of creating a bulk budget to fund roads was good, it was necessary that the Government continued to function with the existing Procurement Law, Budget practice until such a time a new and acceptable Budget plan would be put in place.
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