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Senate approves $200m World Bank loan for Lagos

By BusinessNews Staff on December 6, 2013

The Senate on Wednesday approved $200m being the second tranche of a $600m World Bank loan granted to the Lagos State Government under a development policy operation scheme it applied for in 2010.

The scheme was to be implemented in three tranches by the state government.

The first tranche of $200m was obtained by the state government in 2011 while the second tranche will be accessed in 2014.

The borrowing plan showed that the $200m grant would be used for the construction of ultra-modern burns centre, cardiac and renal centre at the Gbagada General Hospital as well as the 27-km light rail project along the Lagos-Badagry Expressway to Marina.

The balance would be used for the completion of the 70 million gallons per day Adiyan Water Facility, among others.

The Chairman, Senate Committee on Local and Foreign Debts, Senator Ehigie Uzamere, said the projects, when fully implemented, would enhance the socio- economic development of the state.

Senators Ganiyu Solomon and Gbenga Ashafa noted that Lagos State Government had effectively managed earlier funds it had accessed under the scheme.

President Goodluck Jonathan had written to the Senate, requesting for the inclusion of Lagos State development policy operation into the 2012-2014 mid-term borrowing plan for the second tranche of $200m development policy operation by the World Bank.

Meanwhile, Jonathan, in separate letters to the Senate on Tuesday forwarded the Nigerian Communications Commission 2014 budget proposal and the Universal Service Provision Fund budget proposal for consideration.

[Punch]

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