The Oyo State House of Assembly on Thursday, granted a request of the Executive Arm of the Oyo state Government led by Gov. Seyi Makinde to to borrow the sum of Eight Hundred Million Naira (800m) loan facilities as counterpart fund for Water projects in Oyo state.
The credit loan facility request which calls for the provision of accessible water supply in Twenty (20) Local Goverment Areas was granted in sequel to a “message from the executive” sent to the house for approval and read by the Honourable Speaker, Rt. Hon. Adebo Ogundoyin during the house plenary on Thursday.
The loan facility which is to be provided by Unity Bank PLC is to serve as counterpart fund to access 2.9bn from the Federal Ministry of Water Resources in intention to boost water supply and sanitation, a project by the Oyo State Rural Water Supply and Sanitation Agency.
Deliberating on the request, Majority Leader of the House, and Honourable representing Ogbomosho South State Constituency, Hon. Sanjo Adedoyin maintained that the people Of Oyo state faces lots of difficulties before they could access portable water in the rural area adding that the loan facility is highly needed base on reality on ground.
HonourableSpeaker of the House, Rt. Hon. Adebo Ogundoyin further explained that the loan facility will run for the tenure of 2 years with the interest rate of 15% which won’t be applicable until the draw down of the loan.
Ogundoyinstressed that the repayment of the loan will be from the State’s Internal Generated Revenue (IGR), with the monthly payment of about Thirty-three million (33.3m) for the period of 24 months.
The20 Local Government that would benefit the projects are Ibadan South East, Ibadan South West, Ogbomosho, Atisbo, Afijio, Akinyele, Atiba, Iwajowa, Iseyin, Irepo, Ibarapa North, Ibarapa East, Ibadan North East, Kajola, Oyo East, Oorelope, Ona Ara, Oluyole, Saki west, and Saki east.
Theduo of Hon. Isiaka Kazeem Tunde, (Oyo East and West) and Hon. Asimiyu Alarape (Minority Leader) in their seperate remarks stated that the interest of 15% is very high adding that the Northern states of the country have commenced the system.
The motion to grant the request was moved by the Minority leader and Honourable representing Atiba State Constituency, Hon. Asimiyu Alarape and was seconded by Honourable representing Iseyin Itesiwaju State Constituency, Hon. Bamidele Adeola.