LASG Gets FG’s approval for $200 Million World Bank loan

The Federal Executive Council on Wednesday approved an additional $200m loan from the International Development Association, an arm of the World Bank, in support of Lagos State Development Policy Operation.

The Minister of Information and Culture, Alhaji Lai Mohammed; and the Minister of Power, Works and Housing, Mr. Babatunde Fashola, briefed State House correspondents at the end of the meeting presided over by President Muhammadu Buhari.

Mohammed explained that the loan would enable the Lagos State Government to complete some if its desirous projects, such as the 61Km 10-lane Lagos-Badagry Express way.He said the facility would also enable the state government to rehabilitate the inner roads in Apapa in addition to some other major ongoing works.
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,meant to be disbursed in tranches of $200m each year starting from 2011 to 2013,and to be refunded over a 40year period,a 10-year moratorium and 0.5 percent interest.

He said the arrangement suffered delays as a result of partisan political differences in the last dispensation.

He explained also that such loans are deducted at source at monthly FAAC meetings; therefore the risk of defaults is minimal.