Enugu State House of Assembly, Monday, approved Governor Peter Mbah ’s request to source for a N170 billion facility to fund capital projects, among others, in the state.
The lawmakers unanimously approved the request, saying that it would enable the government to deliver on its mandate, especially in the provision of critical infrastructure needed to attract investments to the state.
The state Assembly also expressed delight that the loan would run its full course in the first tenure of the governor.
A breakdown of the loan request by Governor Peter Mbah is as follows: N100 billion bank guarantee line; N10 billion term loan, N10 billion overdraft facility, and N50 billion credit facility.
A letter signed by the Secretary to the State Government (SSG), Chidiebere Onyia, and addressed to the Speaker, Uchenna Ugwu, disclosed that the request was sequel to the approval of the State Executive Council for the offer of N100 billion bank guarantee line, N10 billion term loan and N10 billion overdraft facility from Fidelity Bank and N50 billion credit facility from Globus Bank.
The N100 billion-bank facility will guarantee payment for contracts issued to approved contractors.
The loan will be repaid through Irrevocable Standing Payment Order (ISPO) on consolidated Enugu Internally Generated Revenue (IGR) accounts, which would be domiciled in Fidelity Bank and domiciliation of JAAC/FAAC/Infrastructure Support.
