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Infrastructure Bank Provides N17.8bn loan to Osun for 45km Road Project

By on August 17, 2012

Road

The Managing Director of the Infrastructure Bank Plc, Mr. Adekunle Oyinloye, said on Thursday in Abuja that the bank had completed all negotiations with the Osun State Government on the funding of the N17.8bn Osogbo – Ilaodo Road Dualisation project.

In a statement, Oyinloye said the 45-kilometre road, which contract was recently awarded by the state government to an indigenous construction company, Sammya Nigeria Limited, under a contractor financing agreement, will be completed in 24 months.

The Infrastructure Bank boss said while the bank had provided ‘the pioneering financial solutions’ for the commencement of the project, First Bank Plc had provided all the necessary bank guarantees needed for its total funding, according to the re-payment capabilities of the state government.

He described the project as a clear statement of intent by Infrastructure Bank to continue to be at the forefront of attracting the urgently needed capital into Nigeria’s infrastructure space.

He said, “The bank is delighted to have been able to provide the catalytic financing for the project preparation and developmental funding required to enhance the bankability of the project and subsequently raise the N17.8bn of the capital required for its completion.”

Oyinloye lauded the state government for embracing the bank’s innovative project-financing solutions by “investing in critical infrastructure and providing the necessary credit enhancement and enabling environment that is attracting risk and private capital into the state infrastructure landscape.”

According to him, this will transform the economy of the state through rapid movement of people and goods.

He urged other State governments to emulate such project-financing policy by creating escrow accounts to encourage private investments and developmental funds from both local and international financial institutions.

“This is the only way to fill the huge infrastructural gaps across the nation,” he said, adding that such a step would also help meet the challenges of national socio-economic transformation.

The Infrastructure Bank’s managing director also said that the various tiers of government could provide more infrastructure by institutionalising the policy of public-private partnership for developmental project execution.

Besides, he said states would also successfully create numerous micro-economic activities around such project corridors through well thought-out concession programmes.

 

Source: Punch