The Federal Government has approved a N40 billion loan facility for the Lagos State government for the development of infrastructure and education in the state.
The approval came following a memo brought to the Federal Executive Council (FEC) on Wednesday by Ngozi Okonjo-Iweala, the coordinating minister for the economy and minister of finance, seeking approval to obtain additional credit facility from the International Development Association (IDA) in support of the second Lagos State Development Policy Operation.
According to a working document of FEC, the objective of the project is to improve on public finance in sustainable manner and consolidate on the achievements recorded under the first phase of the project.
The project covers the construction of a 27km light rail, construction of schools and the construction of Adiyan Mini Water Works to provide 2 million gallons of water per day.
Briefing journalists after the weekly council meeting, Labaran Maku, the minister of information, said council approved that the Ministry of Finance obtain additional credit facility in the sum of $200 million from the International Development Association (IDA) in support of the second Lagos State development operation.
The Council, according to him, also approved an additional $42.3 million as additional financing for the Lagos-Epe secondary education project.
Council further approved that the coordinating minister for the economy should execute the financing agreement on behalf of the Federal Government and directed the attorney general of the federation and minister of justice to issue the legal opinion required to render the credit effective.
The loan has a 0.5 percent commitment charge, 0.75 percent service charge, interest rate of 1.25 percent per annum, 25 years repayment period and a moratorium period of five years.
Maku, who briefed journalists alongside the ministers of Federal Capital Territory, Bala Mohammed and transport, Idris Umar, said council also approved the award of contract for operation, maintenance and training of staff for Wupa Basin Sewage Treatment Plant in favour of Messrs S.C.C (Nigeria Limited) in the sum of N2,006,071,928.73, with a completion period of 20 months.
According to a working document of the FEC, the training component in the previous maintenance contracts had offered opportunity for 22 members of staff of FCT Abuja Environmental Protection Board (AEPB) including engineers, scientists, technologists, technicians and others to acquire skills and experience in the operation and maintenance of sewage treatment plant. There was a budgetary provision in 2013 FCT appropriation to fund the project.
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