December 8, 2013

Senate approves $200 million loan for Lagos

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

This allows the Lagos State Governmentbto 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).

Jonathan said the fund formed part of the credit of $600 million granted to thebLagos 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 implementedbin three tranches of 200 million dollarsbeach.

“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 thebsecond 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-bBadagry Expressway Corridor to Marina and the completion of the 70 million gallon per day Adiyan water facility,bamong others.
- NAN

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