By Emmanuel Iriogbe, Abuja.
Edo state government has corrected the news making the round that it was set to borrow the sum of a Hundred Billion Naira (N100b) to finance some infrastrucural projects in the state.
In a press release made available to penpushers online media and signed by the Chief Press Secretary to the state government, Fred Itua, stated that on the contrary, the idea was for the state government to stand as guarantor to the lucky contractors who are able to assess loan facilities with First Bank PLC.
“We wish to state unequivocally that while the Edo State House of Assembly has indeed granted its approval for a facility amounting to N100 billion, the Edo State Government is not obtaining a loan of N100 billion.
“Rather, the Edo State Government is strategically positioned as a guarantor for contractors handling critical infrastructural projects across the State. The guarantee will enable them secure the necessary funding for project execution from First Bank Plc”
” This clarification is crucial to correct any misconception arising from reports suggesting that the Governor had directly obtained an approval to borrow the aforementioned sum.
The statement further clarified that it was ‘specifically a contractor loan facility designed to empower nominated contractors with direct access to capital for their projects, with the State’s guarantee underpinning the financial transaction’.
“This innovative approach is a deliberate move by Governor Okpebholo’s administration to accelerate the development of key infrastructure across Edo State.
“The funds, which will be disbursed by First Bank Plc directly to the contractors based on their project demands, have a tenure of 40 months”
It declared that the Edo State Government was fully committed to fulfilling its guarantee obligations by ensuring timely payments to the bank as agreed, thereby guaranteeing the seamless and expeditious execution of the vital projects.
The statement listed some of the priority projects earmarked for execution under the funding mechanism to include among others; Construction of a flyover bridge at Adesuwa Road; Construction of Evbhukhu-Sapele Road with surface and underground drainage system in Oredo LGA; Construction of Eguaolor-Iguomo-Uvbenisi-Oza Road with Spur to Ohe community in Uhunwonde LGA.
Others are Construction of Okpagha-Amufi Road with Spur to AG Bonze Street, Daddy J Road, and Michael Agbedon Street in Uhunwonde/Ikpoba Okha LGA; Construction of inter roads in Ogbeghe and Old Sapele Road, including associated hydrology structure in Benin City; Construction of Uhie Road off Sapele Road, Benin City; Construction of internal roads in Ugieda village, South Ibie, Etsako West LGA; Construction of a single carriage way of Ekpoma-Uromi-Ubiaja road in Esan, among others.