Says Commercial institution to fund projects
By Solomon Ewela, Benin
The Edo State Government has clarified that it has not taking a one hundred billion Naira Loan, but rather partnering with a commercial bank to serve as a guarantor for contractors handling critical projects across the state to secure funding.
In a press statement issued by the Chief Press Secretary to the governor, Fred Itua, the clarification became necessary following misconception of the approval by the house of Assembly for the one hundred billion Naira facility.
According to the statement, the arrangement is specifically a contractor loan facility designed to empower nominated contractors with direct access to capital for their projects, with the Stateโs guarantee underpinning the financial transaction.
The statement explained that the funds, will be disbursed by First Bank Plc directly to the contractors based on their project demands, have a tenure of 40 months.
Mr. Itua assured that the Edo State Government is fully committed to fulfilling its guarantee obligations by ensuring timely payments to the bank as agreed, thereby guaranteeing the seamless and expeditious execution of vital projects.
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