BEVERLY HILLS, CA, October 24, (THEWILL) – President Goodluck Jonathan on Thursday asked the Senate to include the Lagos State Development Policy Operation II ( DPO) into the 2012-2014 Medium Term borrowing plan of the Federal Government.
In a letter to the Senate, President Jonathan said the World Bank approved a Development Policy Operation (budget support) for a total credit amount of $600m to the Lagos State Government in 2010 to be implemented in three tranches of $200 million each.
According to him, the first tranche of $200m was approved by the National Assembly in the 2010 borrowing plan and the Development Policy Operation 1 was implemented in 2011.
Unfortunately, he added that the second tranche of the Development Policy Operation II was not captured in the 2012-2014 Medium Term borrowing plan.
However, President Jonathan disclosed that given the importance of the second tranche to the success and sustainability of the first tranche, he wants to include it in the current borrowing plan but with no additional funding request.
“The World Bank supported Public Private Partnership project which was approved by the National Assembly in the 2010 borrowing plan with a total credit amount of $315 million.
“The World Bank has only disbursed $15 million to date, after about two years period of implementation.
“The World Bank has therefore embarked on restructuring of the project in the face of current realities in a manner that would release $200 million for allocation to Lagos Development Policy Operation II .
“This is an action that the World Bank, with the support of its board, can undertake. They propose that the $200 million DPO would enable the state complete some critical infrastructure projects.
“The projects that need to be completed are: Ultra modern burns Centre and Cardiac and Renal Centre at Gbagada General Hospital, 27km light rail along the Lagos- Badagry expressway corridor to Marina and completion of the 70 million gallon per day Adiyan Water facility among others.
“In the light of the above, I wish to request the Senate to admit the Lagos State Development Policy Operation II into the 2012 – 2014 Medium Term borrowing plan to enable the state consolidate the gains of the first tranche of the operation with no cost implication to the borrowing plan since the $200m had earlier been approved in 2010,” he said.
BY EMMA UCHE, ABUJA
