The Federal Executive Council (FEC) yesterday approved the signing of a $100 million (equivalent N16 billion) loan agreement with Indian Import-Export Bank to boost power supply in Cross River, Enugu and Kaduna states.
Briefing journalists after the FEC meeting which was presided over by Vice President Mohammed Namadi Sambo, the Minister of State for Finance, Yerima Lawal Ngama, said the loan facility had since been approved by both the National Assembly and the Houses of Assembly of the three states. He said the loan would be secured at a concessionary two percent interest rate and would be repaid over a 10 year period with three years moratorium.
Ngama, however, added that there would be a commitment charge of 0.5% of “undrawn balance and 0.5% for service charge”.
The sum of $30 million would be loaned to the Cross River State government for the Calabar Independent Power Project; $40 million to the Enugu State government for the supply and commissioning of 33KVA and four 15KVA lines as well as the distribution of transformers and other accessories to the 96 communities in the three senatorial districts of the state; while $30 million would go to the Kaduna State government to augment the resources needed for the construction of the 70 Kilometres transmission line from the Gurara Dam to Kaduna Industrial Area.