From Tony Osauzo, Benin
Contrary to reports that the Edo State House of Assembly has given approval to the state government to take N100 billion loan, the government, yesterday, clarified that it is not obtaining any such loan.
In statement by the Chief Press Secretary to Governor Monday Okpebholo, Fred Itua, the government explained that, “the Edo State government is rather strategically positioned as a guarantor for contractors handling critical infrastructural projects across the state. The guarantee will enable us secure the necessary funding for project execution from First Bank Plc.
“This clarification is crucial to correct any misconception arising from reports suggesting that the governor had directly obtained an approval to borrow the aforementioned sum”, the statement added.
It said the arrangement is specifically a contractor loan facility designed to empower nominated contractors with direct access to capital for their projects, with the state’s guarantee underpinning the financial transaction.
“This innovative approach is a deliberate move by Governor Okpebholo’s administration to accelerate the development of key infrastructure across Edo State. The funds, which will be disbursed by First Bank Plc directly to the contractors, based on their project demands, have a tenure of 40 months.
“The Edo State Government is fully committed to fulfilling its guarantee obligations by ensuring timely payments to the bank as agreed, thereby guaranteeing the seamless and expeditious execution of these vital projects.
“Among the priority projects earmarked for execution under this funding mechanism are: construction of a flyover bridge at Adesuwa Road; construction of Evbhukhu-Sapele Road with surface and underground drainage system in Oredo LGA; construction of Eguaolor-Iguomo-Uvbenisi-Oza Road with Spur to Ohe community in Uhunwonde LGA; construction of Okpagha-Amufi Road with Spur to AG Bonze Street, Daddy J Road, and Michael Agbedon Street in Uhunwonde/Ikpoba Okha LGA; construction of inter roads in Ogbeghe and Old Sapele Road, including associated hydrology structure in Benin City; construction of Uhie Road off Sapele Road, Benin City; construction of internal roads in Ugieda village, South Ibie, Etsako West LGA and construction of a single carriage way of Ekpoma-Uromi-Ubiaja Road in Esan, among others.
“This pragmatic and fiscally responsible model underscores Governor Okpebholo’s strong commitment to delivering on his mandate for infrastructural development, ensuring that contractors are well-resourced to complete projects efficiently, and ultimately improving the lives of Edo citizens,” the statement further explained.