Our N10bn infrastructure bond on course – Governor Ahmed

Kwara State government has denied a newspaper report that it has abandoned plans to secure a N10 billion bond for its forthcoming infrastructure projects in the state.

Governor Abdulfatah Ahmed, in a statement by his senior special assistant on media and communication, Muyideen Akorede, maintained that the government’s plans to secure a bond remained on course as captured in the 2016 budget.

Governor Ahmed clarified that the state government had only reduced the proposed bond from N20 billion to N10 billion in view of the drop in federally allocated funds to the state by about 50 percent.

Ahmed said based on current FAAC and internal generated revenue (IGR) levels, the state government could only afford repayment on a N10 billion facility, saying that the government would access the second tranche of the N10 billion as soon as its finances improve.

The governor, who stated that the government would continuously seek avenues for cheap funding for its development programmes, said all future borrowing would be based on capacity to repay without constraining its ability to meet other obligations, such as salary payment and funds for ongoing projects.

He identified the proposed projects under the N10 billion bond to include an underpass at Geri Alimi, Ilorin; dualisation of Zango to UITH, Ilorin; dualisation of Michael Imoudu to Ganmo; new campuses for Kwara State University at Ilesha Baruba and Osi, as well as remodelling of the indoor sports hall of Ilorin Stadium, counterpart and funding for industrial textile park, among others.

Governor Ahmed expressed delight at the inclusion of some key federal roads in the state in the 2016 federal budget, and emphasised that ongoing projects in the state would be funded under a separate funding window.