In furtherance of its effort to boost power supply across the country, the Federal Government has concluded arrangement to obtain a loan of facility to the tune of $100 million from the Indian Import Export Bank.
The Minister of State for Finance, Yerima Ngama, disclosed this while briefing State House correspondents after the weekly Cabinet meeting presided over by Vice President Namadi Sambo.
According to him, the loan which is being procured by the Federal Government on behalf of three states has been approved by the Federal Executive Council and the National Assembly under the medium term borrowing.
The three states that will benefit from the lon facility are; Cross Rivers, Kaduna and Enugu.
According to Ngama, the breakdown shows that Cross River state will get $40million for the Calabar Independent Power Project while in Enugu state will receive $40million from the amount for the electrification of 96 communities including supply of 33KVA and 15KVA lines as well as the distribution of transformers and other accessories.
Also, Kaduna state will receive $30million to be utilized to augment the resources needed for the construction of the 70 Kilometers transmission line from the Gurara dam to Kaduna industrial area.
Part of the money will be used for the construction of 132/ 33KVA substation for power supply to Kaduna Industrial Area just as 50 communities in the state will also benefit from solar electricity project.
According to the minister, the loan would be procured at a concessionary rate of 2% interest rate and will be repaid over a 10 year period with three years moratorium with a commitment charge of 0.5% of undrawn balance and 0.5% for service charge.
Ngama added that the facility has already been approved by both the National Assembly and the respective State Houses of Assembly in the Medium Term borrowing plan.
He spoke further, “We believe this facility will go a long way towards transforming our industrial areas as well other communities as part of Mr. President’s economic transformation agenda,” the Minister said, adding that the loan facility is a bilateral assistance which arose during the visit of Indian Prime Minister to Nigeria in 2007.
The Minister assured that the loan will not compound the debt profile of the country.
