Ogun signs $300m agreements for 3 projects




Ogun State Government has signed agreements for the execution of three development finance institutions-funded , in line with Governor Dapo Abiodun’s economic development agenda.

The include the Ogun State Economic Transformation Project (OGSTEP), Rural Access and Agricultural Marketing Project (RAAMP) and Value Chain Development Programme (VCDP).

The Commissioner for Finance and Governor’s Chief Economic Adviser, Mr. Dapo Okubadejo, signed the agreements on behalf of the state, while the Minister of Finance, Budget and National Planning, Dr. Zainab Ahmed, signed on behalf of the .

Speaking on the ’ significance, Okubadejo said OGSTEP deal worth $250million was a World Bank-funded project aimed at increasing the participation of the private sector in the state’s economy with focus on improving the business-enabling environment, strengthening agri-food value-chains and upgrading skills.

He said the projects began in 2017 with the payment of $5million as Project Preparation Advance (PPA) to support the state government in preparing for the formal application of the projects.

“After a very rigorous evaluation and documentation requirements, which intensified from June 2019, OGSTEP was formally approved by the World Bank Board on February 18, 2020. Consequently, the main financing agreement and the subsidiary financing agreement were executed with the ,” he said.

The commissioner said OGSTEP would make the state more attractive for private sector investments, thus increasing its internally generated revenue base.

He added that the World Bank would provide the much needed financial and technical support towards implementing economic reforms and initiatives.

On the $45million Rural Access and Agricultural Marketing Project (RAAMP), Okubadejo said Ogun State, with three projects, was a prime beneficiary of six projects approved by the World Bank across the country on February 18, 2020.

He said: “RAAMP, which has the mandate of fixing select rural roads and markets across the three senatorial districts, has been running at preparatory stage with state counterpart fund before the signing of the $44.23million credit agreement.”

Ogun State and the , according to him, signed the Subsidiary Loan Agreement on February 11 to finance rural roads and develop select markets for enhanced prosperity to local farmers, mainly youths and market women.

“The signing of the agreement for the upgrade, rehabilitation, routine maintenance, spot improvement and performance based maintenance will culminate in the improvement of no fewer than 1495km of rural roads,” he said.


On the VCDP worth $15million, the commissioner said the project was being implemented in only nine states, with Ogun State as the only one from the Southwest.

He listed other states as Anambra, Benue, Ebonyi, Niger, Nasasrawa, Kogi, Taraba and Enugu.

Source

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