FEC Approves $100 Million Loan For Three States

November 20, 2013 9:55 PM

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The Federal Executive Council (FEC) on Wednesday approved the signing of a $100 million loan agreement from the Indian Import- Export Bank for three states namely Cross Rivers, Enugu and Kaduna.

The Minister of State for Finance, Yerima Ngama disclosed this to State House correspondents at the end of FEC meeting presided over by Vice President Namadi Sambo.

According to him, the $100 million facility will be first taken by the federal government and lent to the three states.

He said that $30 million is for Cross Rivers state towards its independent power project while Enugu state government will get $40 million for the electrification of 96 communities, supply and commissioning of 33KVA and four 15KVA lines and the distribution of transformers and other accessories to the 96 communities in the three Senatorial zones of the state.

Ngama said $30 million will be on lent to the 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.

50 communities in Kaduna state, he said, will also benefit from solar electricity project.

He also said that the facility will attract concessionary rate of two per cent interest rate and will 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.

Source: channelstv.com

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