Gov. Okowa Set To Take N4.5bn Performance Bond By Fidelity Bank, Gets Delta Assembly Approval

Governor Ifeanyi Okowa of Delta state is set to take another whooping bond from a commercial bank for the failed Warri/Effurun water scheme project.

This is coming as Delta House of Assembly on Wednesday approved the request sent to it by the governor for the issuance of N4.5 billion Performance Bond by Fidelity Bank.

The request, which was contained in a letter, was read during the plenary of the Assembly in Asaba by the Speaker of the House, Chief Sheriff Oborevwori.

According to Okowa, the N4.5 billion bond was for the Warri/Effurun water scheme concession.

Okwa also said that the state government had secured the offer and approval of Fidelity Bank performance bond in the sum of N4.5 billion with some terms and conditions.

He said: “the state government under the new funding arrangement, particularly in the face of paucity of funds was persuaded of the benefits of the funding arrangement in line with its avowed commitment to complete the project.’’

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The governor said that the essence of the letter was to seek the support and ratification of the Assembly to the State Executive Council’s Approval for the issuance of the required performance guarantee bond by Fidelity Bank.

Leading the debate for the approval of the governor’s request, the Majority Leader of the House, Mr Tim Owhefere, said that the request of the governor was geared towards the completion of the water project.

Owhefere said that the concession of the project would take the risk off the state government as it would also make water available in Warri, Effurun and environs.

Supporting the debate, Mrs Pat Ajudua, representing Oshimili North constituency, said that water is very essential for human activities, adding that Okowa had shown commitment by partnering with Fidelity Bank in the concession of the water scheme.

Ajudua recalled that the House had earlier set up a committee to look into the viability of the project and reported back to the Assembly that the water scheme was viable as its benefits were enormous.

He said that the project would be funded by Fidelity Bank as state government would no longer expend more funds on the project as the Debt Management Office had approved arrangement for the funding.

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The governor’s request was unanimously adopted by the Assembly when put to a voice vote by the Speaker.

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