Senate approves N14.7bn World Bank loan for Edo State

THE Senate, yesterday, approved the request by President Muhammadu Buhari to obtain a $75 million credit loan totallibng N14.7 billion from the World Bank for Edo State.

 

The approval by the Senators was sequel to a report of the Senate Ad-hoc Committee on Local and Foreign Debts on “The Edo State Development Policy Operation 11 Credit Facility of $75 million from the World Bank” by its Chairman, Senator Kabir Gaya, APC, Kano South. According to Gaya, it became imperative for the Senate to approve the Edo State Development Policy Operation 11, DPO11, as requested by President Buhari because the projects earmarked by the Governor Adams Oshiomhole led government to be funded from the credit facility when fully implemented will boost the socio- economic development of the state. Buhari had on August 5, written to the Senate requesting for the approval to obtain $75 million credit loan totalling to N14.7 billion from the World Bank for Edo State.

 

As a follow up to the letter, Senate President, Senator Bukola Saraki on Tuesday this week, constituted an ad- hoc committee to consider the request. The Senate President who set up the seven- member ad- hoc committee on Local and Foreign Debt headed by Senator Kabir Gaya, APC, Kano South, immediately referred the matter to the committee to look into it and report back to the Senate, yesterday for further legislative input. Speaking further while presenting the report, Senator Gaya explained that the Edo Development Policy Operation DPO(budget support) for $225 million was approved by World Bank in 2012 and was captured in 2009-2011 borrowing plan to be disbursed in three trances.

 

He said, “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 results report on Edo State Development Policy Operation 1, DPO1. “The credit facility has an attractive and low financing data of 1.25 percent interest; moratorium of five years and a 25 year maturity tenor. The facility is already captured in the 2015-2017 Medium Term Expenditure Framework, MTEF.” The Senate approved the loan despite the stiff opposition against it by Senator Matthew Uroghide, PDP, Edo South, saying unequivocally that the people of Edo State were against the loan.

 

Senator Uroghide, said “We are here to represent our people and any activity that will bring about development must be supported. This report has tremendous gains for the state, knowing this, the President has premised this request based on the report he got on the performance of the first trench of the loan. This loan was premised on certain things that the state government said it was going to do; it was meant to enhance good governance, they are not based on things that are visible. “It was to enhance private sector development, increased IGR in the state and increase private investment and employment opportunities. I am not standing to oppose what has been granted by Mr President or the desire of the state government, I am here to look at some of the claims of the things that have been done.”

 

The Senator who queried whether the loan was important considering the debt profile of the state, said that now that the DPO – 2 was coming, if invested on things that are visible, there would be no problem, adding, “On behalf of the people of the state, out rightly, the people have said that they do not want the loan. I want to say that on August 7, when the notice was given to this Senate, I got over 2000 text messages and emails.” Earlier in his contribution, Senate leader, Senator Muhammed Ndume, APC, Borno South, noted that the borrowing plan had already been approved by the last senate and that the World Bank has strict borrowing conditions. He urged his colleagues to approve the loan.