The Oyo State House of Assembly on Thursday, granted a request by the Seyi Makinde led executive arm to access an Eight Hundred Million Naira loan facility as counterpart funding for Water projects in the state.
The credit loan facility request meant for the provision of accessible water supply in Twenty (20) Local Goverment Areas was granted 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 a bid to boost water supply and sanitation, a project by the Oyo State Rural Water Supply and Sanitation Agency.
Speaking at the plenary, the Majority Leader of the House, and Honourable representing Ogbomosho South State Constituency, Hon. Sanjo Adedoyin maintained that the loan facility is needed to reduce the difficulties faced by residents in rural area to access portable water.
Meanwhile, the Speaker, Rt. Hon. Adebo Ogundoyin explained that the loan facility will run for a period of 2 years with an interest rate of 15% which won’t be applicable until the draw down of the loan.
Ogundoyin stressed 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.
The twenty 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.
Two members of the House, Hon. Isiaka Kazeem Tunde of Oyo East and West state constituency and Hon. Asimiyu Alarape of Atiba state constituency 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.