Edo govt denies obtaining N100b loan facility

The Edo State Government on Wednesday stated that the State House of Assembly’s approval for a facility amounting to N100 billion is not the same as obtaining a loan of N100 billion.

In a statement made available to the media in Benin, Fred Itua, the Chief Press Secretary to Governor Monday Okpebholo, emphasised that the Okpebholo-led government is strategically positioned as a guarantor for contractors handling critical infrastructure projects across the state.

The statement reads in part, “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 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.

The CPS noted that the 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.

“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,” Itua said.

He listed part of the priority projects earmarked for execution under the funding mechanism as follows: 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.

Others are 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; Construction of a single carriage way of Ekpoma-Uromi-Ubiaja road in Esan, among others.