President sends approval letter to N’Assembly over Lagos $200m loan

President Goodluck Jonathan has asked the National Assembly  to approve the inclusion of $200m loan facility in the 2012 – 2014 Medium Term Borrowing Plan to enable Lagos State Government access the second tranche of the $600m it secured from the World Bank since 2010.

Jonathan stated this in a letter titled “ Request for Inclusion of Lagos Development Policy Operation II into the 2012 – 2014 Medium Term Borrowing Plan of the Federal Government” dated October 23, 2013 and addressed to Senate President David Mark.

The president noted in the letter, which was read by Mark on the floor of the senate on Thursday, that the World Bank approved a DPO of $600m loan for Lagos State in 2010 to be released in three tranches of $200m every year.

He said that the first tranche, which was approved by the National Assembly in 2010 had been utilised by the state to implement some projects in 2011.

The President said his letter to the Senate President was necessary in view of the fact that Lagos would not be able to access the second tranche of the loan unless the fund was captured in the 2012 – 2014

MTBP.

He said, “Given the importance of the second 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 but with no additional funding request.”

He said the $200m loan facility would enable Lagos to complete critical projects like  the Ultra-modern Burns Centre and Cardiac and Renal Centre at Gbagada General Hospital,  and the 27km Light Rail

along the Lagos-Badagry Expressway Corridor to Marina.

He added that Lagos would also use part of the fund to complete the 70m gallon per day Adiyan Water Facility, among others, stressing that the loan amount would enable Lagos to consolidate the gains of the first tranche of the operation.

Jonathan said the World Bank had so far disbursed $15m out of its $315m Supported Public Private Partnership project, which was also approved by the National Assembly in the 2010 Borrowing Plan.