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The Enugu State House of Assembly has approved the request of the Governor Peter Mbah administration to source for a N170 billion facility to fund capital projects, among others, in the state.

The lawmakers unanimously approved the request on Monday, saying that it would enable the government deliver on its mandate, especially in the provision of critical infrastructure needed to attract investments to the state.

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The Assembly, which is dominated by the Labour, also expressed delight that the loan would run its full course in the first tenure of the Governor.

A breakdown of the request is as follows: N100 billion bank guarantee line; N10 billion term loan, N10 billion overdraft facility, and N50 billion credit facility.

A letter signed by the Secretary to the State Government, Prof. Chidiebere Onyia, and addressed to the Speaker, Hon. Uchenna Ugwu, disclosed that the request was sequel to the approval of the Enugu State Executive Council of the offer of N100 billion bank guarantee line, N10 billion term loan and N10 billion over draft facility from Fidelity Bank and N50 billion credit facility from Globus Bank.

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The N100 billion bank facility will guarantee payment for contracts issued to approved contractors.

The loan will be repaid via Irrevocable Standing Payment Order (ISPO) on consolidated Enugu State IGR accounts, which would be domiciled in Fidelity Bank and domiciliation of JAAC/FAAC/Infrastructure Support.

The N10 billion term loan is on a tenure of 48 months, and a monthly repayment via ISPO on consolidated Enugu State IGR accounts, which will be domiciled in Fidelity Bank and domiciliation of JAAC/FAAC/Infrastructure Support. It will be used for infrastructural development.

The N10 billion overdraft facility will be used for prompt payment of recurrent expenditures such as salaries and has a tenure of 12 months with monthly clean up and repayment via ISPO on consolidated Enugu State IGR accounts, which will be domiciled in Fidelity Bank and domiciliation of JAAC/FAAC/Infrastructure Support.

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The N50 billion credit facility is for the refinancing of the outstanding receivables from Enugu State Government and the repayment plan is 42 months equal and consecutive monthly repayment of principal and interest, which will be debited from Enugu State FAAC account with Globus Bank PLC.

Hotel Presidential Not for Sale, Says Enugu Gov’t

The Enugu State Government has dismissed reports that it has put up the Hotel Presidential for sale, stressing that the hotel will never be sold.

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The government, in a statement by the Commissioner for Information and Communication, Aka Eze Aka, said it only gave the Enugu State Housing Development Corporation (ESHDC) approval to take over an undeveloped part of the premises to raise funds for public-oriented infrastructural development projects.

“The purported sale of Hotel Presidential is not true. Contrary to the reports, government is in the process of partnering with private sector investors to restore the hotel to its glory as the premier three-star hotel East of the Niger.

“The government only gave approval for the ESHDC to sell an undeveloped area of the hotel lying fallow for more than five decades without adding any value to the hotel.

“It is should be stressed that the present landmass of the hotel exceeds the minimum acreage for a three-star hotel.

“Government has decided as a matter of policy to dispose moribund and unusable assets at the current market values and deploy the proceeds to critical infrastructure and housing projects beneficial to the masses. The empty plots at Hotel Presidential are among such disposable assets, and others will be made known to the general public subsequently.

“But for the avoidance of doubt, Hotel Presidential has not been sold and will never be sold”, the Commissioner stated.

The Information Commissioner said the government had been inundated with credible security reports pointing to the use of the undeveloped area now marked for sale as a hideout for criminals, adding that a shrine for initiation of cultists was also recently discovered there.

“The sale of the lands will be open, transparent and competitive. Limited time shall be given to serious bidders to avoid the antics of speculators. The government is looking at how quickly the plots can be built up to add to the aesthetics of the prime location adjacent to the prestigious hotel”, the statement concluded.