Delta Assembly Approves Okowa’s Request To Borrow N7.9b For Delta Line, Road Projects

The Delta State House of Assembly has approved the N7.9 billion loan request of    Governor Ifeanyi Okowa.

Okowa had asked the state assembly for the approval to borrow N3billion to finance priority road projects and additional N4.9 billion to refinance ailing Delta Transport Company, (Delta Line).

The lawmakers who resumed plenary on Tuesday after a break occasioned by the 2019 general elections approved the request of the Governor following a resolution of the House.

The Speaker, Rt. Hon. Sheriff Oborevwori read the letter of the governor for the credit facility at the plenary.

According to the letter, Okowa said there was urgent need for the state government to support some of its roads contractors, in accessing financing to aid accelerated execution of critical projects before the onset of the rainy season.

Governor Okowa said the request had become expedient considering the almost three billion naira drop in federation accounts receipt in January 2009 when compared to December 2018 which had hindered planned disbursement to the contractors .

Advertisement

He said that most of the contractors were already on site and have generated payment certificate for works already executed which were yet to be defrayed .

The governor said the funds were required to make progress in the relevant project execution adding that the state executive council at it’s meeting of February 5, 2019 considered and approved that the state government should support certain contractors for the state’s critical priority projects .

According to the letter, the governor said in obtaining the short term loan facilities amounting to three billion naira only (N3 billion) from Zenith Bank with the state government bearing the costs associated with the facilities as requested by the contractors.

Governor Okowa, in a second letter read by the Speaker, Oborevwori, said in a bid to revamp the ailing Delta Transport Service Limited which had over the years relied on continuous assistance from the state government to meet salaries and other recurrent expenditure obligations as well as capital expenditure despite being a business that should generate revenue.

He said the state government sold sixty percent (60%) equity of Delta line to God is Good Motors Transport Development Company by way of a public private partnership arrangement with the state government retaining forty percent (40%) equity in the company.

The Governor said sequel to the sake which involved defrayment of outstanding commitments including salaries arrears, the new management of Delta Line submitted a five year business plan which among other things envisaged an immediate capital injection of four point nine billion naira (4.9billion) for the procurement of one hundred and thirty (130) commuter buses as well as the renovation and establishment of eighteen terminals with information technology infrastructure and furnishing across the country.

Advertisement

While moving separate motions for the assembly to consider the request, the Majority Leader, Hon. Tim Owhefere urged the House to give the request expressed approval.

The motion was adopted through a voice voted after it was seconded by Hon. Emeka Nwaobi and Hon. Johnson Erijo .

The second motion also moved by Owhefere was seconded by Hon. Peter Onwusanya and Hon. Emeka Elekeokwuri and the House thereafter in a voice vote approved the governor’s request.

Earlier at plenary, while welcoming members back to plenary, the Speaker commended Deltans for the reelection of Governor Okowa for a second term and all PDP candidates in the just concluded 2019 general elections.

He said the landslide victory of Governor Okowa was a vote of confidence passed on him by Deltans and congratulated members of the House who emerged victorious at the poll.

Oborevwori said the House has entered the last lap of the sixth assembly and urged chairmen of House Committees who are yet to submit reports on bills referred to their committees to turn in such reports to enable the House process them before the end of the Sixth Assembly.

Advertisement

FOLLOW BIGPEN NIGERIA - Get Breaking News Alerts

📱

WhatsApp

f

Facebook

X

X