$350m World Bank facility is concessionary, Says Ogun Govt

$350m World Bank facility is concessionary, Says Ogun Govt

Monday, August 7, 2017 8:10 pm

Governor Ibikunle Amosun of Ogun State

The Ogun State government has explained that the budget support facility being sought from the World Bank is concessionary.

It debunked reports in a segment of the media suggesting that the House of Representatives rejected the request of the state government for the concessionary facility from the Word Bank when it met the officials of states seeking foreign loan approvals at the National Assembly in Abuja last Wednesday.

Speaking at a press conference in Abeokuta on Monday, the Ogun State Commissioner for Budget and Planning, Ms Denrele Adesina, said the meeting with the House of Reps Committee was preliminary.

“Contrary to speculations in the media, the approval process for the budget support facility is ongoing as the state government officials only had a preliminary meeting with the House Committee on Loans, Aids and Debt Management,” she said.

She explained that the budget support facility was at a rock bottom interest of two percent with a five-year moratorium and redeemable for 25 years.

She added that the amount was to be released in tranches based on bench marked performances by the state government.

According to the Commissioner, “The World Bank Budget Support is for states that have demonstrated ability for proven results. The leap of Ogun State from 35th position in 2010 to one of the best five in 2014 in terms of Ease of Doing Business, transparency, growth in IGR, among others, has impressed the global institution, and is ever willing to partner with our government.”

“The World Bank is concerned about the welfare of the people of Ogun State. It is interested in capacity building through education, development of agriculture, improved health care delivery. The Amosun administration has met the benchmarks on these. The World Bank looks forward to partnering with such states to achieve its global objectives of development,” she submitted.

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