Buhari signs Executive Order 7 to tackle road infrastructure
President Buhari has signed an Executive Order with the main focus designed to improve roads infrastructure across the country. The Executive Order known as Executive Order 7 of 2019 on the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme is aimed to develop and deliver Public Private Partnerships (PPP) with notable investors to bridge the road infrastructure gap in the transportation sector of the country.
At the signing ceremony at the presidential villa, Abuja, the President explained that under the arrangement, 19 Eligible Road Projects are to be undertaken by six leading manufacturing and construction firms, located in 11 States, and in each of the six Geo-political Zones.
He said the development provides another opportunity to demonstrate the commitment of the administration to conceive, design, develop and deliver PPP with notable investors in order to close the road infrastructure gap in the transportation sector, adding that there have also been revenue shortfalls that have hampered government’s efforts to fully fund critical projects.
The President explained that the country’s reliance on annual budgetary allocations to fund roads development has been disappointing, given that the National Assembly has not always passed budget proposals expeditiously.
The President said through these innovative funding mechanisms, government have been able to address the challenges of project funding, cost variation and completion risks that have plagued the development of the nation’s critical roads infrastructure assets.
The President therefore called on other local and international investors, as well as the State Governments, to embrace this roads infrastructure development Scheme. He also invited investors to submit viable proposals for more road projects, such that, in time, the scope of this initiative will cover all 36 States of the Federation.
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