FG approves N40bn loan for Lagos State Govt

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ABUJA – The Federal Government has approved a N40 billion loan facility for for the development infrastructure and education in the state, the Minister Information, Mr Labaran Maku, said.

Maku made the disclosure on Wednesday in Abuja when he briefed State correspondents on the outcome the weekly Federal Executive Council (FEC) meeting, presided over by President Goodluck Jonathan.

He said the approval followed a memo brought to the Council by Dr Ngozi Okonjo-Iweala, the Coordinating Minister the Economy and Minister Finance, seeking approval to obtain additional credit facility from the International Development Association (IDA).

According to him, the credit facility will be in support of the Second Lagos State Development Operation.

The project covers the of a 27km light rail, of schools and the of Adiyan Mini Water Works to two gallons of water per day.

He said “Council approved that the Ministry of Finance obtain additional credit facility of 200 dollars from IDA in support of the second Lagos State Development Operation.

“The Council also approved an additional 42.3 dollars as additional financing for the Lagos-Epe Secondary Education Project.

“Council further approved that the coordinating minister for the economy should execute the financing agreement on behalf of the Federal Government.

“The Council then directed the of the Federation and Minister of Justice, Mr Mohammed Adoke, to issue the legal opinion required to render the credit effective.’’

According to Maku, the loan has a 0.5 per cent commitment charge, 0.75 per cent service charge, an interest rate of 1.25 per cent per annum, 25 years repayment period and a moratorium period of five years.

The minister, who briefed correspondents alongside the Ministers of Federal Capital Territory (FCT), Sen. Bala Mohammed and Transport, Sen. Idris Umar, said the Council also approved the award of contract for operation, maintenance and training staff for Wupa Basin Sewage Treatment Plant.

He said the plant would gulp N6 billion, with a completion period of 20 months.

Meanwhile, a working document of the Council stated that the training component in the previous maintenance contracts had offered opportunity for 22 members of staff of FCT Abuja Environmental Board (AEPB).

“Council also at its meeting approved the commission of consultancy services for the Shore and Rehabilitation of Escravos Breakwaters and Greenfield Development at Ogidingbe, , for the NPA/Ministry of Transport in the sums of N722.29 million.’’

According to him, the project is in line with government’s desire, through the NPA, to restore the structural stability of the Escravos Breakwaters constructed in the 1950s, develop a new and build Central Processing Centres for the Fertiliser and Petrochemical Plants.

He said the project would also support the infrastructural development of the -to-Energy Revolution in the Ogidingbe area.

Maku added that the project, when completed, would generate a total of 1,700 job opportunities for professionals and non-professionals during the planning and of the Escravos and related industrial development, breakwater and dredging operations.(NAN)