Ogun gets Senate’s nod to go for $350m World Bank loan

The Senate, on Thursday, gave nod to Ogun State to secure a Development Policy Operation (DPO) loan of $350 million from the World Bank.

The loan is part of the 2016 to 2018 External Borrowing (Rolling) Plan of the Muhammadu Buhari-led administration.

The approved credit facility has an interest rate of 1.25 per cent, moratorium of five years and a 25 year maturity tenor. The laon approval followed Senate’s adoption of the report of the Committee on Local and Foreign Debts, chaired by Senator Shehu Sani.

Presenting the report of the committee, Sani said Ogun State Government met the various conditions by the World Bank to qualify for the loan.

According to him, the state has a low and acceptable debt sustainability level.‎ The senator explained that the facility will be used to finance key programmes of the state to stimulate internally generated revenue, develop critical infrastructure that will attract private investors to the state.

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“The Committee observed that: the Ogun State Government has put in place institutions framework for transparent and accountable budgetary and financial process.

“The various projects to be funded from the facility will engender economic growth; also increase revenue generation capacity of the State and create employment opportunities. That Ogun State Government has shown a high degree of prudence in implementing her annual budget,” the report approved by the Senate read.

Sani added that when fully implemented, the projects will boost the socio-economic development of the state.

Besides receiving briefs from Federal and state government officials, the committee also relied on the following documents: Fiscal Responsibility Act, Debt Management Office Act, Debt Sustainability Analysis as well as the World Bank Implementation Completion and Results Report on Ogun State Development Policy Operation.
By Ehisuan Odia…

 

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