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The House of Assembly in Enugu State, on Monday approved the request by Governor Peter Mbah’s to source for a ₦170 billion facility to fund capital projects, among others, in the state.
The lawmakers unanimously agreed to grant the request, stating that doing so would allow the government to fulfil its obligations, particularly in terms of building the vital infrastructure required to draw in investments for 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 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.
Meanwhile, following continuous clampdown on illegal mining activities in Enugu State, the state government has reiterated its commitment to supporting genuine investment activities through provision of investment enablers for ease of doing business, such as adequate security, infrastructure, attractive tax regime and road projects.
While disclosing this, at the weekend, shortly after the state Executive Council Meeting, the Attorney General and Commissioner for Justice, Dr. Kingsley Udeh, said the state had resolved to establish the Environmental Remediation Trust Fund (ERTF) and the State Security Trust Fund (SSTF) where miners, legally sanctioned by the government with genuine licenses, would contribute an agreed sum of money into the fund for remediation projects.
Udeh said that this would help to safeguard the environment, ensuring that health hazards resulting from mining activities are mitigated, and also enable adequate security of life and property.