Galaxy Television Menu

FEC Approves $170 Million Loan From France

The Federal Executive Council(FEC) has ractified presidential approval for the borrowing of one hundred and Seventy million dollars from the french development agency.

The Minister of Information Labaran Maku who brief State House correspondents after Wednesday’s FEC meeting said the amount when accessed will be used for development of power infrastructures in the Federal Capital Territory (FCT).

Maku said the fund which would be used for the construction of power substations is given by the french government on exceptionally concessionary grounds

The Minister of Information Mr. Labaran maku, said the loan is one of such efforts of the jonathan’s administration to deliver a reasonable percentage of power supply, before it wind down.

He said there is no other way after successful privatization of the power sector that government could improve the sector than to source for funds to upgrade power infrastructures for a desired result.

The Minister of Finance, Ngozi Okonjo-Iweala, said the loan is to assist in increasing transmission base in Abuja.

“This loan is to boost transmission in the FCT, to make sure that we keep ahead of the demands for electricity in this FCT,” she said.

“The terms include 1.56 per cent interest rate per annum, commitment charge of 0.5 per cent per annum and then a service charge of 0.25 per cent per annum payable on the amount withdrawn.

The loan is for 20 years with a seven years grace period that means moratorium on payment for seven years and the rest payable over 20 years” she said.

Related Articles

The following 6 pages may interest you as well: