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Bayelsa shops for N40bn loan for cargo airport

By BusinessNews Staff on July 10, 2014

In a bid to speedily complete the construction of its cargo airport project, the Bayelsa State Government is shopping for a N40 billion loan from commercial banks in the country.

It was gathered that the state governor, Chief Seriake Dickson, had last week forwarded a letter of request to the State House of Assembly seeking approval for the government to stand as a guarantor to enable Bayelsa Airlines secure the facility.

It was learnt that the governor had in the letter explained to the legislature that the proposed project was designed for the largest cargo and commercial aircrafts.

He was said to have assured the lawmakers that the airport would be ready for use by the last quarter of next year.

“Out of the total estimated cost of the project, the state government has already expended the sum of N9.3 billion for payment of compensation for land, consultancy services, construction of run-way and clearing of land, among others,” Dickson further explained in his letter.

Meanwhile, sequel to the governor’s request, the state House of Assembly on Tuesday invited relevant officials of the government to provide details of the N40 billion loan.

Those invited were the Commissioner for Finance, Duate Iyabi, Attorney-General and Commissioner for Justice, Kemasuode Wodu, the state Accountant General,Tarimo Aseimo, and the Managing Director of Bayelsa Airlines, Henry Ungbuku.

The four officials, in their submissions during questioning by the Committee presided over by the Speaker, Konbowei Benson, assured the lawmakers of the socio-economic benefits of the airport to the state and allayed fears that the loan facility may be diverted into private pockets.

There were indications, however, that the 24-member Assembly would approve the governor’s request as majority of the lawmakers had during the debate spoken in favour of the state government to stand as a guarantor for the state airline.

Bayelsa state government recently disclosed plans to organise its maiden investment and economic forum that will attract global business leaders to the state.

The investment forum tagged: “Unlocking Bayelsa State’s Economic Potential,” according to the government would be the framework for promoting investment with the active collaboration of the private sector.

The state’s Commissioner for Commerce, Trade and Investment, Kemela Okara had explained that the event would help to showcase to the country and the global community, that the “new Bayelsa” is ready to welcome genuine investors and investments.

[This Day]

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