Public Private Partnership Accelerates Public Road Infrastructure Development – Osinbajo
The Vice-President, Yemi Osinbajo, has said the Public Private Partnership (PPP) initiative for road infrastructure development has helped speed up public road construction.
The Vice President said the PPP initiative was now delivering road projects totalling 780.15 km or 19 roads across the six geopolitical zones of the nation.
In a statement signed by the Vice-President spokesman, Laolu Akande, Osinbajo made the statement at a webinar on PPP organised by Yusuf Ali and Co. in collaboration with the Business Law Department of the Faculty of Law, University of Ilorin.
In the statement titled, ‘How Buhari administration is making progress in road projects through PPP – Osinbajo’, the Vice President said “In 2017, we introduced the Road Trust Fund.
“The fund is a tax credit scheme to incentivise private sector participation in the development of federal road infrastructure.
“The relief is enjoyed by a deduction of 50 per cent of the amount spent on the project from the income tax that would have been payable by the company.”
This the Vice President said was clearly stated in the Executive Order No. 007 of 2019, the Companies Income Tax (Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme).
“The objective of the scheme is to accelerate public road infrastructure development by incentivising private sector entities to construct and refurbish eligible roads across the country in exchange for tax credits, which could then be applied against company income tax payable.
“Nineteen roads have been approved so far by Mr President under the scheme, totalling, 780.15km.
“These roads, in 11 states across the six geo-political zones, are being executed by six private sector players in the manufacturing and construction industries.”