RVHA Approves N50bn Bond For RSG

L-R: Principal Manager, Training, Nigerian Ports Authority (NPA) Patricia Aboh, Vice-President, Membership Development, Enugu Chamber of Commerce, Industry, Mines and Agriculture, Mr Emeka Nwakpa, Vice-President, Trade Fair, Mr Jasper Nduagwuike and representative of NPA Managing Director, Mr Lawrence Oladele, inaugurating NPA atand at the 25th Enugu International Trade Fair, recently.

The Rivers State House of Assembly has given its approval for the state government to go ahead and take a bond of the sum of N50 billion for the completion of ongoing construction of infrastructure projects in the state.
The House, which gave the approval on Monday during its sitting said, the bond which would be obtained from the Access bank Plc and Zenith Bank Plc would help the state government complete  on-going projects in the state during the drying season.
The House had received a leter from the State Chief Executive, requesting the Assembly to grant it approval to able it procure bond of N50 billion from Access bank Plc and Zenieth Bank Plc for the completion of some on-going projects in the state.
During the debate, Hon. Josiah John Olu, representing Eleme said the letter from the State governor was in order and was self-explanatory.
Olu, who is the chairman of Finance Committee in the House said the state is known for its huge infrastructure projects, adding that the approval from the House would help the contractors complete the projects before the rains set in.
Hon. Augustine Ngo, (Abua/Odual) urged the state government to make available list of some of the projects to be completed with the bond, as he urged the Ministry of Works to consider the Odual road which has not been attended to.
The lawmaker noted that the people of Odual have no road and would be happy if the new approval would include the road, among others.
Hon. Nname Ewor, Ahoada East constituency 1, however, said the bond was necessary since the interest rate is the same with the bond already acquired and would be paid back from the same source.
The House, however, approved the bond to allow the government complete the projects before the end of its tenure.
Speaking with journalists after the plenary, the Chairman, House Committee on finance, Hon. Josiah John Olu said it is wise for the executive to request for the bond, stressing that when the budget was passed, it had deficit of N100 billion.
He said, “we have since realized that the bond market is not where you work in and out with money. You have to file in your papers with the Securities and exchange Commission (SEC) and they have to issue you with all documents.
“From our projections, we are hoping to have access to the bond in August or September”, he said.
The lawmaker commended the governor for having the foresight to open a window, adding that this move will enable the government meet all her contractual agreements with road and other infrastructure projects in the state pending when the N100 billion bond would be ready for the state to access.
He noted that the process of issuance of bond required the SEC to look at the state’s debt profile.
The House Committee chairman said the Executive has negotiated an interest rate equivalent to that of the bond.
However, the bill for a law to provide for the classification of chiefs and recognition of chieftaincy stools also scaled first reading.