TheCable

President Muhammadu Buhari has requested the national assembly to approve a tranche of $200 million World Bank loan for Lagos state.

The senate president and speaker of the house of representatives, read the letter on Tuesday when both chambers resumed from a break of six weeks.

“I seek your support to facilitate the consideration and early approval of the DPO II loan of the US$200m to enable the state to consolidate on the gains of the second tranche of the operation (DPO) II,” part of the letter read.

“Request for special approval of Lagos State DPO 11 under the Federal Government external borrowing rolling plan 2015 to 2017,” requested the Senate to endorse the loan expeditiously.

“I refer to the above subject and request approval for Development Policy Operation (DPO) loan (Budget Support) of US$200 million to Lagos State from the World Bank,” the letter read.

“You may wish to know that the World Bank approved a DPO loan for a total sum of US$600 million to Lagos State Government in 2010 to be implemented in three tranches of US$200 million per annum.

“The first tranche was approved by the national assembly in the 2010-2012 federal government external (Rolling) borrowing plan and the second tranche was in the 2012-2014 plan.

“The DPO 1 has been successfully implemented as adjudged by the World Bank, the bank’s board of executive directors approved the second tranche of the DPO on April 29, 2015.

“The DPO 111 was captured in the federal government external (Rolling) borrowing plan of 2014-2016 which was discussed with the national assembly, but was not concluded.

“Pursuant to the above, therefore I seek for your support to facilitate the consideration and approval of the DPO 111 loan of US$200million to enable the state to consolidate on the gains of the second tranche of the DPO 11.

‘It is instructive to note that key programme objectives of the DPO are already beginning to show in terms of increased inflow of private investment to the state, increased private sector employment opportunities and increased internally generated revenues.”

The president had earlier written to the national assembly to request the approval of $75 million loan for Edo state.