The Federal Executive Council on Wednesday approved a sovereign warranty for two separate loans totaling $242.2m (about N40bn) from the International Development Association for Lagos State.
The Minister of Information, Mr. Labaran Maku; the Minister of the Federal Capital Territory, Senator Bala Muhammed and the Minister of Transport, Senator Idris Umar, briefed State House correspondents at the end of the meeting presided over by President Goodluck Jonathan.
Maku said while a loan of $200m was approved to support infrastructure in the state, additional loan of $42.2m would be in support of secondary education.
He said the loans were the second phase of a $600m facility approved for the state by the IDA in 2010.
The state had in 2011 benefited from $200m loans under the first phase.
The minister said, “The Minister of Finance brought a memorandum seeking approval to obtain additional credit facility from the International Development Association in support of the Second Lagos State Development Policy Operation.
“The objective of the project is to improve on public finance in a 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 waterworks to provide two million gallons of water per day.”
Maku added that the council also approved that the ministry should obtain an IDA credit in the sum of $42.3m as additional financing for the Lagos-Epe Secondary Education Project.
He said the loans would attract 0.5 per cent commitment charge, 0.75 per cent service charge and 1.25 per cent interest per annum.
The minister added that the loan expected to be paid back in 25 years had a moratorium of five years.
The FCT minister said the council also approved the award of a contract for the operation, maintenance and staff training for Wupa Basin Sewage Treatment Plant in Abuja.
The contract, he said, was awarded to Messrs SCC (Nigeria Limited) in the sum of N2.6bn with a completion period of 20 months.
He explained that the training component in the previous maintenance contracts had offered opportunity for 22 members of staff of the FCT Abuja Environmental Protection Board, including engineers, scientists, technologists and technicians to acquire skills and experience in the operation and maintenance of sewage treatment plant.
Muhammed explained that there was a budgetary provision in the 2013 FCT budget to fund the project.
Also, the Minister of Transport said the council approved the commissioning of consultancy services for the Shore Protection and Rehabilitation of Escravos Breakwaters and Greenfield Port Development at Ogidingbe, Delta State, for the Nigerian Ports Authority.
He said the contract was awarded to Messrs Royal Haskoninb DHV in the sum of N722.29m and €2.05m inclusive of all taxes with the latter payable at the prevailing exchange rate at the time of payment.
He said the consultancy services for the project which had a completion period of eight months was in line with government’s desire to restore the structural stability of the Escravos Breakwaters constructed in the 1950s and develop a new port as well as build central processing centres for the fertilizer and petrochemical plants with the infrastructural development to support the gas-to-energy revolution in the Ogidingbe area.
“The project upon completion will generate a total of 1,700 job opportunities for professionals and non-professionals during the planning and construction of the Escravos Port and related industrial development, breakwater and dredging operations while 10,000 jobs will be created during the operations phase on an annual basis for professionals and non-professionals,” Umar said.