The senate has approved $350 million World Bank loan for Ogun State Development Policy Operation (DPO).
The approval followed the presentation of a report on the loan by Shehu Sani, chairman, senate committee on local and foreign debts.
During the plenary session on Thursday, Sani said the committee detected that Ogun state DPO loan budget had been approved by World Bank in 2016.
He added that the loan was also captured in the 2016-2018 borrowing plan, with approvals by the national assembly.
According to him, the committee also observed that the terms of the loan facility were acceptable with low financing interest rate of 125 percent, a five-year moratorium period and a five-year maturity term.
“The facility has already been captured in the 2016-2018 Medium Term Expenditure Framework,” he said.
“It also has low and acceptable loan sustainability level, therefore it is eligible to borrow.”
He explained that the projects to be funded by the facility would facilitate economic growth, increase revenue generation and create employment opportunities in the state.
“The DPO loan will further help to enhance the capacity of the state government,” he said.
“The state has met the various conditions laid by World Bank and as such qualified for the loan.
“It has also put in place institutional framework for transparent and accountable budgetary and financial purpose.”