Contractors laud FG over Sukuk fund initiative

The contractors handling federal road projects in the North-East and North-West zones of the country have commended the Federal Government over its initiative to fund some road projects with Sukuk.
Sukuk are Islamic bonds, structured to generate returns to invest without infringing Islamic law that prohibits interest on loans.
Some of the contractors told newsmen in Kano during the inspection of ongoing road projects in the two zones, that the initiative would go a long way to address road infrastructure problems in the country.
The tour was led by Shehu Umaru, the North-West Zonal Director of Highways, Federal Ministry of Power, Works and Housing.
Roy Hungushi, the Project Manager, Dantata and Sawoe Construction Company, has called on the Federal Government to sustain the initiative to ensure regular funding of ongoing projects.
News Agency of Nigeria reports that Dantata and Sawoe is the contractor handling section one of the Kano-Maiduguri dualisation project and the section covers 101 kilometres extending from Kano to Shuarin Hungushi.
He said the return of his company to site after several years followed the release of Sukuk fund by the Federal Government.
Hungushi said: ‘‘This project has been slowed down due to funding issues in the past but with the injection of Sukuk fund few months ago, we are fully back to work.
‘‘We are progressing and we intend to continue the earth work before the rainy season because it is difficult to work with laterite during rains.
‘‘We have received N5 billion from the Sukuk fund and as you can see, coming back to work has a trickle effect on the economy generally.’’
He said the company had recalled about 450 of its members of staff following the injection of the fund into the project.
Sende Titus, the Assistant Project Manager, CGC Nigeria Limited, the contractor handling section five of the Kano-Maiduguri dualisation project, commended the Federal Government for injecting money into road projects.
NAN further reports that Section five of the project covers from Damaturu to Maiduguri.
He said his project was awarded in 2006 but was not sustained because of poor funding and security challenges in the zone.
Titus said his company had received N3 billion from the Sukuk fund, adding that the release of the money was the motivating factor that returned the company to site.
He urged the Federal Government to sustain payments to contractors through initiatives like Sukuk to address the infrastructural challenges facing the country.
The assistant project manager said the return of peace to Borno was another inspiring factor for the return of the contractor to site.
He, therefore, called on the Federal Government to sustain the tempo to boost employment opportunities being generated by the projects.