The Senate on Wednesday approved $3.702 billion as Federal Government’s outstanding 2010 external borrowing plan.

The approval followed its adoption of a recommendation in a report submitted by its joint Committees on Finance; National Planning, Economic Affairs and Poverty Alleviation.

Sen. Ahmed Makarfi, while submitting the report, said the committees’ recommendation was for the final approval of outstanding $2.564 billion of the total sum sought.

The senate, on December 20, 2010, initially approved $1.137 billion of the $3.702billion.

He said the fund “is for the federal government and 16 states to access funding facilities from Islamic Development Bank; the International Development Association; the French Development Agency and the Indian Line of Credit.’’

Makarfi said the federal government and the 16 states were involved in the bi-lateral and multi-lateral relationships with the aforementioned lending agencies.

He added that they were seeking the facilities to finance power/energy, Rural Access and Mobility Project 11(RAMP 11), special intervention for infrastructure and social programmes.

“The outstanding 2010 external borrowing plan is made up of 12 projects, eight of which belong to the 16 states , three for the federal government while the remaining one is to be shared between states and the federal government.’’

He noted that all the borrowings under review “have more than 13 per cent concessions as required by the borrowing guideline.

“This is a total departure from the previous external debt pattern, when Nigeria was borrowing from the international capital market under severe and unfavourable terms and conditions,’’ he said.

He said about 75 per cent of the loans attract 0.75 per cent interest rate per annum, while the remaining 25 per cent attracts interest charge not exceeding two per cent per annum.

Makarfi held that the projects to be funded with the proceeds were desirable and would improve the state of infrastructure of benefitting states if properly applied.

While the committees approved $152 million being sought by federal government to facilitate PHCN’s power/energy project, they however, declined the requests from Ogun, Cross River and Enugu States.

This is because the amount is yet to be confirmed by the federal ministry of finance.

The Senate also approved the report of its committee on Banking, Insurance and Other Financial Institutions which recommended the confirmation of the appointment of two presidential nominees into the Nigerian Deposit Insurance Corporation (NDIC).

The nominees are Alhaji Umaru Ibrahim as Managing Director and Mr Aghatise Erediauwa as Executive Director of the corporation.

Sen Nkechi Nwaogu,  said they found the nominees fit and proper persons with the requisite qualifications and experience to occupy the positions.