Delta State Governor, Senator Dr Ifeanyi Okowa, has explained how the State Government would be spending the N150 billion bridging finance facility approved on Tuesday by the State House of Assembly.
Information gathered that Governor Okowa gave the explanation in a letter of request made to the state Assembly requesting for the finance facility.
In the letter addressed to the Speaker, Rt. Hon. Sheriff Oborevwori, which was read at plenary in Asaba, Okowa said: the requested credit facility which has Zenith Bank PLC as the “lead arranger, would be principally tailored toward defraying arrears of unpaid certificates earned by contractors with respect to completion of some critical ongoing legacy projects awarded by past and present administrations in the state.
The governor also said that part of the loan would be tailored toward taking care of outstanding pension commitments to the state and local government areas pensions in the contributory pension scheme, amounting to N20 billion and N10 billion respectively.
“The speaker and members of the state house of assembly, I wish to inform you that the state is expecting refund from the Federal Government, being Petroleum Subsidy Payments made without recourse to the 13 per cent derivation due to oil producing states from January 1999 to Nov. 30, 2021.
“Delta state’s portion in this regard amounted to N270.6 billion.
“Bearing in mind the administration’s resolve to finish strong, it is necessary for the state to capitalise on the refund to defray arrears of unpaid certificates earned by contractors with respect to completion of some critical ongoing legacy projects awarded by past and present administrations” the governor said.
Consequently, the motion for the approval of the credit facility was moved by the Majority leader of the assembly, Chief Ferguson Onwo.
The motion which was unanimously adopted by the house of assembly when put to a voice vote by the speaker, was seconded by the Chief Whip, Mrs Pat Ajudua.
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