Jonathan seeks amendment to $7.9bn external borrowing plan

President Goodluck Jonathan
| credits: nigerianbulletin.com

President Goodluck Jonathan has written to the Senate for an amendment of the $7.905bn 2012-2014 Medium Term External Borrowing Plan.

In the letter, which was read on the floor of the Senate on Tuesday, Jonathan said the plan would now include a $200m water supply project for Rivers State.

According to him, the additional item will be funded by the African Development Bank and will provide potable water supply to residents of the state.

The President said, “Second, the Federal Government is currently developing a low-income housing finance facility to support the provision of affordable homes for Nigerians.

“This scheme will be financed using a $300m credit facility from the World Bank. We would like to swap this new $300m facility with the proposed guarantees for the power sector in the draft borrowing plan, thereby ensuring that we do not increase the overall size of loans proposed in the external borrowing plan.”

Jonathan also notified the Senate that the government would issue a $1bn Euro bond in continuation of the programme initiated by the administration of President Umaru Yar’Adua as well as a $100m Diaspora bond.

The borrowing plan earlier submitted to the National Assembly stipulates an annual borrowing of $2.4bn being cumulative facilities offered for the completion of pipeline projects.

The breakdown of the $7.9bn borrowing plan shows that the World Bank will provide $2.975bn; African Development Bank, $731.23m; Islamic Development Bank, $672.85m; French Development Agency, $56.61m; and Exim Bank of China, $3bn.