By Festus Ahon

ASABA—DELTA State House of Assembly has approved N11 billion for Governor Ifeanyi Okowa to enable the state government defray outstanding payments to major road contractors in the state using certificate discount facilities.

House of Representatives

The request which was contained in a letter from the governor, was read by the Speaker, Mr Sheriff Oborevwori. The governor in the letter stressed the urgent need to start defraying the state government’s commitment to contractors which represents a large portion of the state’s overall debt.

Okowa in the letter said the move became expedient because in addition to the set debt thresholds in the state Fiscal Sustainability Plan, the World Bank recently approved grants linked to certain performance indicators.

Loyalty to APC will take me to Lagos House — Hon. Idris

He said one of such performance indicators was a reduction of such debts by replacing them with more transparent formal debts such as commercial bank loans that have clear repayment terms.

According to Okowa, the move would substantially improve contractors’ confidence in the state government and overall projects execution. Opening debate on the request, the Majority Leader, Mr Tim Owhefere said that the essence of the request, was apparently to enable the state ensure completion of major projects such as roads.

Other lawmakers who added to the debate included Samuel Mariere and Mrs Shola Daibo, who urged the House to give the state the needed support to help actualise the smart mantra of the government.

Majority Leader of the House thereafter, moved for the approval of the request, which was seconded by  Johnson Erijo and subsequently approved by the House.