Finally, Senate Approves $75m World Bank Loan for Edo State, as Edo People Reject Loan
Finally,
Senate Approves $75m World Bank Loan for Edo State, as Edo People Reject LoanThe Senate today gave the Edo State Government the go ahead to obtain $75 million loan, amounting to N14.7 billion, from the World Bank.
The approval followed the adoption of the recommendation of Senate Ad-hoc Committee on Local and Foreign Debt chaired by Senator Kabiru Gaya (Kano South).
Presenting
the report for Senate's adoption today, Gaya said following the committee's
interactions with officials of the state government, it made the following
observations:
"That the state Development Policy Operation (DPO) for $225 million was approved by the World Bank in 2012 and captured in 2009-2011 borrowing plan to be disbursed in three tranches;
"That the drawdown of the first tranche of $75 million was in 2013 and the projects under it were satisfactorily implemented as affirmed by the World Bank in its implementation completion and the result report on Edo State DPO; "That the credit facility has an attractive and low financing data of 1.25 per cent interest; moratorium of five years and a 25 year-maturity tenor;
"That the facility is already captured in the 2015-2017 Medium Term Expenditure Framework (MTEF).
"That the Edo State has reasonably justified the borrowing and acceptable debt sustainability level, and therefore is eligible to borrow;
"That the loan would be used to finance roads and rural infrastructure development and health sector development, among others;
"That various projects to be funded from the facility signpost great economic growth and increased revenue generation capacity of the state.
"The committee earmarked that the Senate do approve the Edo State DPO II in the sum of $75 million as requested."
Meanwhile, senator representing Edo South, Senator Mathew Uroghide (Edo South), has described the move to obtain the loan as unjustifiable.
He told the Senate that on the day President Muhammadu Buhari sent a letter seeking Senate’s nod to approve the loan request, he received 2,000 text messages and emails from the people of Edo State, vehemently rejecting the request.
He cited Section 14(2) of the 1999 Constitution which stipulates among others, that governance shall be according to the wishes of the people, emphasising that obtaining the loan is antithetical to the wishes and yearnings of Edo people.
He also submitted that there was nothing on ground to show for the first tranche of the loan obtained by Governor Adams Oshiomhole's administration which he said implied that obtaining the second tranche was unjustifiable.
"That the state Development Policy Operation (DPO) for $225 million was approved by the World Bank in 2012 and captured in 2009-2011 borrowing plan to be disbursed in three tranches;
"That the drawdown of the first tranche of $75 million was in 2013 and the projects under it were satisfactorily implemented as affirmed by the World Bank in its implementation completion and the result report on Edo State DPO; "That the credit facility has an attractive and low financing data of 1.25 per cent interest; moratorium of five years and a 25 year-maturity tenor;
"That the facility is already captured in the 2015-2017 Medium Term Expenditure Framework (MTEF).
"That the Edo State has reasonably justified the borrowing and acceptable debt sustainability level, and therefore is eligible to borrow;
"That the loan would be used to finance roads and rural infrastructure development and health sector development, among others;
"That various projects to be funded from the facility signpost great economic growth and increased revenue generation capacity of the state.
"The committee earmarked that the Senate do approve the Edo State DPO II in the sum of $75 million as requested."
Meanwhile, senator representing Edo South, Senator Mathew Uroghide (Edo South), has described the move to obtain the loan as unjustifiable.
He told the Senate that on the day President Muhammadu Buhari sent a letter seeking Senate’s nod to approve the loan request, he received 2,000 text messages and emails from the people of Edo State, vehemently rejecting the request.
He cited Section 14(2) of the 1999 Constitution which stipulates among others, that governance shall be according to the wishes of the people, emphasising that obtaining the loan is antithetical to the wishes and yearnings of Edo people.
He also submitted that there was nothing on ground to show for the first tranche of the loan obtained by Governor Adams Oshiomhole's administration which he said implied that obtaining the second tranche was unjustifiable.
Comments