The Federal Executive Council yesterday approved an additional $200m loan from the International Development Association, an arm of the World Bank, in support of Lagos State Development Policy Operation. As a way of enlightening Nigerians about this loan and its implication, INFORMATION NIGERIA has put together the 6 things you need to know about the loan…
1. Babatunde Fashola explained that the facility was not a new loan but a segment of a programme of developmental initiatives which was approved in 2010 with a total sum of $600m for Lagos State.
2. According to Fashola, the sum was meant to be disbursed in tranches of $200m each year starting from 2011 to 2013.
3. The arrangement according to the Minister suffered delays as a result of partisan political differences in the last dispensation.
4. The initial agreements with the World Bank was a 40-year loan, a 10-year moratorium and 0.5 percent interest but because of the delays that subsequently characterised the partisan interference by the time this one was approved, Lagos lost the opportunity of 40 years as it is now a loan of 25 years, the moratorium has reduced to five years instead of 10 years.
5. The interest rate has gone up to 2.5 percent from 0.5 percent. However, the heart-warming about it is that it would help to finance infrastructure.
6. The loan is meant to enable the Lagos State Government complete some if its ambitious projects, such as the 61Km 10-lane Lagos-Badagry Express way and other inner roads.
Lagosians what is your take, nay or yay?