By Demola Akinyemi
ILORIN—Kwara State Government yesterday said it had not abandoned plans to secure a N20 billion bond for infrastructure development in the state, but had only reduced it by half, saying it would only access the second part when economy of the state improved.
The State Governor, Alhaji Abdulfatah Ahmed, in a statement by his Senior Special Assistant on Media and Communication, Dr. Muyideen Akorede, maintained that the plans to secure a bond remained on course as captured in the 2016 budget.
According to him, the state government had only reduced the proposed bond from N20billion to N10billion in view of the drop in federally allocated funds to the state by about 50 per cent.
He explained that based on current Federation Account Allocation Committee, FAAC and Internally Generated Revenue, IGR levels, the state government could only afford repayment on a N10 billion facility, adding that the government would access the second tranche of N10 billion as soon as its finances improve.
Governor Ahmed, who stated that the government would continue to seek avenues for cheap funds 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 listed projects to be executed through 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, KWASU, at Ilesha Baruba and Osi as well as remodeling of the Indoor Sports Hall of Ilorin Stadium, counterpart funding for Industrial Textile Park, amongst others.