FG secures N1.16 billion World Bank loan to rehabilitate Obudu dam
Despite Nigeria’s increasing debt profile, the Federal Executive Council (FEC), Wednesday, approved the borrowing of N1.16 billion from the world bank.
The money is meant for the rehabilitation of Obudu dam in Cross River state.
The Minister of Information, Labaran Maku, disclosed this in Abuja after the Council meeting presided over by President Goodluck Jonathan at the State House.
Mr. Maku, while explain the reason for the project, said the loan would be sought from the International Development Association (IDA), an organ of the World Bank.
“The Minister of Water Resources brought this memo to enable Cross River State government carry out its regional urban water supply project which will cover four communities of Obudu, Ogoja, Ikom, and Calabar.
He explained that the Cross River State Government has since 2005 gotten an International Development Association loan to develop a regional water scheme that will meet the needs of communities in Cross River. The state of Obudu dam has however, made it impossible for that project to commence.
Mr. Maku explained that the dam, which belongs to the Federal Government, has been in a state of disrepair and needs urgent attention.
“So the Ministry of Water Resources today brought a memo to council to rehabilitate the Obudu Dam which will enable the state government to access this loan and quickly finish the project to ensure that the urban regional water project for Ikom, Ogoja, Obudu and Calabar is completed,” he said.
He added that the rehabilitation would enable the Cross River State Government to carry out its regional urban water supply project that would cover four communities in the state.
Also speaking at the briefing, the Minister of Water Resources, Sarah Ochepe, said that the role of the Federal Government is to stand as surety on behalf of the state for the loan.
She added that the loan was secured on liberal terms, but did not give details.