Buhari writes NASS, seeks approval for $5.851m loan for railway

THE Senate, on Wednesday, received from President Muhammadu Buhari, the request on two separate templates totalling $12.912 billion for approval.

In the request, made under 2016-2018 external borrowing (rolling) plan of the Federal Government, President Buhari sought approval of the National Assembly to secure a $5.851 billion from the China Exim Bank.

He also asked the National Assembly to approve another $6.926 billion from the World Bank.

The two loan requests totalled $12.912 billion.

The president, in his letter, said Lagos-Kano railway modernisation project and the Lagos-Ibadan segment would gulp $1.231 billion.

Also, the Lagos-Kano railway modernisation project and that of Kano-Kaduna segment would take $1.146 billion, while the Coastal Railway project, Lagos-Calabar segment is expected to gulp $3.474 billion.

The three components are part of the loan request from China Exim Bank.

According to the request letter, parts of the $6.926 World Bank loan would be used to finance projects in the Boko Haram ravaged North-East, provide social inclusion and welfare advancement project.

Polio eradication support and routine immunisation project, the president said, would get $125 million; community and social development project, $75 million, while health programme investment project in state would take $125 million.

Also, the state education programme investment programme investment project is to take $100 million, while the youth employment and social support project would get $100 million. Fadama III project, according to the letter, would get $50 million.

“As you are aware, the funds available under the China/Africa fund are limited and loan applications from all African countries are funded based on first come first serve.

“Therefore, there is an urgent need for us to sign these loans as soon as they are approved or we will lose out in the event that we delay in signing the loan agreement. These loans form part of our overall rail funding strategy.

“We are already in the process of completing the concession of the Port Harcourt to Maiduguri line to immediately link the eastern part of the nation.

“We fully intend to source further consessioning funding to ultimately upgrade this critical line to high speed standard guage line. These projects form part of our overall plans to rescusitate the rail transport across the nation and thereby drive inclusive growth,” the letter read in part.

Speaking on North-East development, the president, in the letter, said “You may also recall my earlier request for the speedy clerance of some emergency projects earmarked for the North-East in the 2016-2018 borrowing plan. You will also recall that my request was based on the need to consolidate the relative peace at that time. Since then, the situation, as you are aware, has changed dramatically and introduced even more urgency to the situation in the zone than ever before.

“While the capture and destruction of the stronghold of Boko Haram in Sambisa forest was welcome news, the recent and unfortunate incident of the bombing of an IDP camp by mistake with loss of civilian lives brings to fore, the need to resettle the people back to their homes quickly, in order to avoid such incidence in the future.”

The president said the national social safety net programme, intended to assist the poor and most vulnerable people in the society nationwide, started in January with the first cash transfer payments in eight states.

“However, for us to expand the programme to all the states, we need additional resources in addition to our 2017 budgetary allocation,” he added.

On November 1, 2016, President Buhari forwarded a request to both chambers of the National Assembly to approve his request to borrow $29.96 billion to finance projects cut across all sectors with emphasis on infrastructure, agriculture, health, education, water supply, growth and employment generation, among others.

The lawmakers had revealed then that they rejected the loan request because of the breakdown was not attached to the letter by the president.

They also said the president had not sent the 2016-2018 borrowing plan contained in the last paragraph of the letter.