The Kwara State government has denied a newspaper report that it has abandoned plans to secure N10 billion bond for its forthcoming infrastructure projects in the State.
The State Governor, Abdulfatah Ahmed, in a statement by his Senior Special Assistant on Media and Communication, Dr. Muyideen Akorede, maintained that the government’s plans to secure a bond remains on course as captured in the 2016 budget.
Governor Ahmed clarified that the State government has only reduced the proposed bond from N20 billion to N10 billion in view of the drop in federally allocated funds to the state by about 50 per cent.
He said based on current FAAC and IGR levels, the State can only afford repayment on a N10 billion facility, stressing that the government will access the second tranche of N10 billion as soon as its finances improve.
Governor Ahmed, who stated that the government will continuously seek avenues for cheap funding for its development programs, said all future borrowing will be based on capacity to repay without constraining its ability to meet other obligations such as salary payment and funds for ongoing projects.
The Kwara Governor identified the proposed projects under the N10 billion bond to include an underpass at Geri Alimi, Ilorin, Dualisation of Zango to UITH, Ilorin, Dualisation of Michael Imoudu to Ganmo, new campuses for Kwara State University (KWASU) at Ilesha Baruba and Osi as well as remodelling of the Indoor Sports Hall of Ilorin Stadium, counterpart funding for Industrial Textile Park, amongst others.
Governor Ahmed expressed delight at the inclusion of some key federal roads in the State in the 2016 Federal Budget, and emphasised that ongoing project in the State will be funded under a separate funding window.