Daily Independent Online.
*
Thursday, July 01, 2004.
Nigeria obtains new N155b loans
By Sanya Adejokun,
Senior
Correspondent, Abuja
Nigeria
has obtained new loans amounting to $1.113.29 billion (N155.86) from the World
Bank since the inauguration of the Obasanjo administration in May 1999.
They
cover 15 various projects, ranging from health development to Universal Basic
Education (UBE).
Most
of the projects are performing below expectation thus drawing the ire of the
bank and Finance Minister Dr. Ngozi Okonjo-Iweala, and increasing the debt
burden of the country as commitment charges mount due to late drawing of the
facilities.
The
World Bank does not charge interest on loans but they attract 0.5 per cent
service charge and 0.75 per cent annual commitment charge with a 10-year
moratorium and a payment period of 35 years.
Investigation
showed that the bank officials are not happy with the implementation rate of
four of the projects and have categorised them as unsatisfactory.
These
are the second Health Systems Development ($127.00 million); HIV/AIDS Programme
Development to reduce the spread and mitigate the impact of HIV infection
($90.30 million); Local Empowerment and Environmental Management ($70 million)
and the Privatisation Support ($114.29 million).
Efforts
to obtain explanation for the implementation ratings were unsuccessful on
Wednesday, but some of the projects which got satisfactory rating have more
undisbursed balance than some with satisfactory rating.
Those
with satisfactory rating include second Primary Education for Universal Basic
Education ($55 million); Community Based Urban Development ($110 million);
Community Based Poverty Reduction ($60 million); Economic Management Capacity
Building ($20 million) and Lagos Urban Transport ($100 million).
They
also include Micro, Small and Medium Enterprise ($32 million); Transmission
Development ($100 million); Fadama II ($100 million); Polio Eradication ($28.70
million); Small Towns Water ($5 million) and Universal basic Education ($101
million).
Of
the total amount, only $163.87 million has been disbursed, leaving $1.08
billion undisbursed as at June 15, 2004.
In
her anxiety over mounting commitment charges, Okonjo-Iweala recently summoned
project implementation directors from both the states and Federal Government to
know what problems they encounter in the implementation of their various
projects.
At
the meeting Thursday last week , both Babatunde Osotimehin of the National
Action Committee on AIDS and Dayo Motereola, the Managing director and Chief
Executive of the Lagos Metropolitan Transport Authority, told her of their
particular hassles.
Osotimehin
argued that $90.30 million is too much an amount to spend on awareness and
capacity building in 18 states alone and urged that the scope of the project be
widened to include other states, and other programmes, such as distribution of
anti-retroviral drugs for HIV/AIDS victims.
On his part, Motereola complained of the meddlesomeness of
Works Minister Adeseye Ogunlewe who has “disallowed officials of Lagos
State Government from working on federal portions of the roads involved in the
scheme”.
