Wednesday, 20 November 2013

FEDERAL EXECUTIVE COUNCIL APPROVES $100M LOAN FOR CROSS RIVER, ENUGU & KADUNA STATES



The Federal Executive Council has approved hundred million dollar loan from the Indian Import- Export Bank for three states of the federation.
Announcing this after the FEC meeting today, Minister of State for Finance, Yerima Ngama said the facility will be secured by the federal government and lent to Enugu, Kaduna and Cross Rivers states. According to the Minister, the loan will attract concessionary rate of two per cent interest rate to be repaid over a ten year period with three years moratorium, but with a commitment charge of 0.5 per cent of undrawn balance and 0.5 per cent for service charge.
A breakdown of the figure shows that Cross Rivers state will receive $30 million, to fund the completion of its independent Power project. Enugu state government will get $40 million to be spent on electrification of 96 communities, supply, commissioning of 33KVA/ four 15KVA lines and the distribution of transformers and other accessories to the 96 communities in the three Senatorial zones of the state.  He added that $30 million will be lent to Kaduna state government to augment the resources needed for the construction of 70 Kilometers transmission line from the Gurara Dam to Kaduna industrial area and the construction of 132/ 33KVA substation power supply to Kaduna industrial area. Also, part of the fund will be used by the state government to construct solar electricity project in 50 communities. The meeting, which was presided over by Vice President Namadi Sambo, took out time to felicitate with Dr Jonathan on his 56th birthday today.

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