The Akwa Ibom State Government, on Thursday, secured the state House of Assembly’s approval to serve as guarantor for a N10 billion bank loan for a contractor handling the dualisation of Etinan-Ndon Eyo Road in the state.
The loan, from the United Bank for Africa, is with an interest rate of 14.5 per cent per anum and will run for 36 months, according to a statement from the House of Assembly.
The House also gave Governor Udom Emmanuel approval to get a separate N5 billion loan for the state government.
The House, which did not give details of the loan, said the money was “to enable the government complete ongoing road projects in the state”.
The 29km Etinan-Ndon Eyo Road, awarded to Wizchino Engineering Limited by Mr. Emmanuel’s administration, connects Etinan with Onna Local government area where the governor comes from.
“The facility will offer the State Government the opportunity to make payment in tranches of N344,209,774.43 at most per month to the contracting firm, Wizchino Engineering Limited, instead of making lump sum payment thereby ensuring that the project is completed on time and also freeing funds for other uses on monthly basis,” Mr. Emmanuel had informed the state House of Assembly in his letter to them.
During deliberation on the matter, Mark Esset, a member representing Nsit Atai State Constituency, told his fellow lawmakers to approve the governor’s request and not deliberate on it.
The loan is coming three days after a former senator from the state, Ita Enang, said that Governor Emmanuel was taking out billions of naira from money accruing to the state from the federation account to settle huge debts incurred by the immediate past administration of Godswill Akpabio.