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OSUN SEEKS N60B LOAN BOND FOR CAPITAL PROJECTS

By NBF News
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Osun State Government is proposing to secure N60billion loan through bond to finance some of the capital projects to develop the state. The loan, which will be collected in two tranches of N30billion each will attract interest rate between 14-14.5 per cent payable in seven years.

The decision to secure the loan was taken at the 28th Executive Council meeting held at Government Secretariat in Osogbo. Briefing newsmen on the outcome of the meeting, the State Commissioner for Information and Strategy, Mr Sunday Akere said that the state government has approved to forward a bill to the State House of Assembly on the loan for the financing of specific capital projects.

Akere said that the bill was to be known as Bond and Fiscal Responsibility Bill already considered and approved by the Executive Council, adding that it would be processed to the state lawmakers for their consideration and approval as well.

Akere said the Executive Council noted that government is in dire need of funds to successfully execute capital projects for development under the six-point intergral action plan, hence government would urgently require the money.

He explained further that the bill, when it becomes a law, would provide an opportunity for the government to raise long-term loan at cheap and fixed interest rates throughout the period of the loan.

The Commissioner also disclosed that another bill to be known as the Osun State Land Holdings Authority Bill 2012 was also considered and approved by the Executive Council for the purpose of the administration and allocation of agricultural land to needing farmers. The objectives of the proposed bill were to acquire parcels of land and create a landbank for investors in agriculture and support the policy of government on self-sufficiency in food production.

He then explained that the state Agricultural Land Holdings Authority, if eventually passed, would be headed by a General Manager and will also have a law tribunal for resolution, mediation and arbitration of disputes.

Members of the Tribunal would consist of a chairman, who shall be a lawyer of not less than 10 years, any person with agriculture background and any person with the background of Estate Management, Urban Regional Planning or Land Surveying.

Meanwhile, Governor Rauf Aregbesola has signed the award of contract to the tune of N17.5 billion for the rehabilitation and reconstruction of six selected roads across the state with Hunge International Limited.

The Governor disclosed that the contractor was ready to finance the project on behalf of the state government over a short period of time, adding that the contractor was just mobilized with 15 per cent of the contract sum.