A FEW weeks after the Presidency requested the Senate to approve the borrowing of $7.9 billion, it on Tuesday sent an amendment to allow for additional borrowing of $200 million in the 2012-2014 Medium-Term External Borrowing Plan to the lawmakers for approval.
In a letter to the Senate President, David Mark, which was read on the floor of the Senate, President Goodluck Jonathan explained that the additional $200 million would be expended on water project for Rivers State.
“First, we would like to include a $200 million water supply project being planned for Rivers State. This project would be financed by the African Development Bank and shall provide potable water supply to residents of Rivers State.
“Secondly, the Federal Government is currently developing a low-income housing finance facility to support the provision of affordable homes for Nigerians. This scheme will be financed using a $300 million credit facility from the World Bank.”
The Presidency also stated in the letter that, “we would like to swap this new $300 million facility with the proposed guarantees for the power sector in the draft borrowing plan, thereby ensuring that we do not increase the overall size of loans proposed in the external borrowing plan.
“Thirdly, we would like to bring to your attention the fact that we need to issue a $1 billion Euro Bond in continuance of the programme initiated under the administration of President Umaru Musa Yar’Adua as well as a $100 million Diaspora Bond.”
Source: The Guardian
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