Delta Assembly Approves N11bn For Payment Of Road Contractors

The Delta State House of Assembly has approved N11billion for Governor Ifeanyi Okowa to enable the state government defray outstanding debts owed to major road contractors in the state using certificate discount facilities.
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.
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.