Senate approves $200 million loan for Lagos

Lagos Governor, Babatunde Fashola

The loan is to help the Lagos government complete some projects.

The Senate on Wednesday approved the inclusion of the Lagos State Development Policy Operation II (DPO) into the proposed pipeline projects under the 2012-2014 external borrowing plan.

This allows the Lagos State Government to borrow the second tranche of $200 million from the World Bank.

The senate took the decision after considering the report of the Ehigie Uzamere (APC-Edo) led committee on Local and Foreign Debts.

President Goodluck Jonathan had on October 24, urged the National Assembly to include the Lagos State Development Policy Operation (DPO) of $200 million into the 2012-2014 Medium Term Borrowing Plan (MTBP).

Mr. Jonathan said the fund formed part of the credit of $600 million granted to the Lagos State Government in 2010 for implementation in three batches.

The President’s letter to the Senate President, David Mark, which was read during a plenary session, said the amount was not captured in the 2012-2014 MTBP.

“The World Bank approved a Development Policy Operation (Budget Support) for a total credit amount of 600 million dollars to the Lagos State Government in 2010.

“The fund is expected to be implemented in three tranches of 200 million dollars each.

“The first tranche was approved by the National Assembly in the 2010 Borrowing Plan,” he said.

According to him, the Development Policy Operation (DPO) 1 was implemented in 2011.

“However, given the importance of the second tranche to the success and sustainability of the first tranche, I wish to submit it for your consideration for inclusion in the current borrowing plan,” the president said.

The proposed $200 million DPO is to enable the state to complete some critical infrastructure projects, including the Ultra-modern Burns Centre and Cardiac and Renal Centre in Gbagada.

The credit facility is also expected to cover the 27km light rail on the Lagos-Badagry Expressway Corridor to Marina and the completion of the 70 million gallon per day Adiyan water facility, among others.

(NAN)

Support PREMIUM TIMES' journalism of integrity and credibility

 

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


NEVER MISS A THING AGAIN! Subscribe to our newsletter

* indicates required

DOWNLOAD THE PREMIUM TIMES MOBILE APP

Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD: This space is available for a Text_Ad.. Call Willie on +2347088095401 for more information


All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.