FG May Take Loans To Fund Power Projects, Others

VICE PRESIDENT Namadi Sambo on Friday said that the Federal Government was looking towards the direction of concessionary and cheap loans as a way to surmount the huge funding challenges being encountered in its quest to provide adequate infrastructure for the teaming Nigerian population.
He stated that “power is an emergency issue and takes precedence in implementation of government programmes.”
Vice President Sambo while receiving the contractors handling the National Independent Power Projects in Sapele, Calabar and Uromi Power plants, said the Federal Government was strategizing on ways to meet the funding requirements for infrastructural development in the country.
He stated that the Yen Credit facility recently resuscitated by the Japanese government to which Nigeria is privy would go a long way in assisting Nigeria to meet her infrastructural needs.
Vice President Sambo urged the delegation to partner the Federal Government in setting up Coal Power Plants, considering the huge deposits of coal in Nigeria, which runs into trillions of tones, citing the Gombe deposit.
He also called on the Japanese company to consider partnering with government in the provision of Hydro Power Projects like that of Mambilla and rehabilitation of the Jeba Hydro Power Plant, adding that Nigeria has several large, medium and small dams that can accommodate hydro power plants.
Sambo assured the contractors that government would assist companies that are ready to partner with her in providing adequate infrastructure in the country by helping to secure such facilities as insurance cover, guarantees from reputable international organizations like the World Bank (MIGA) unit, Islamic Development Bank (IDB) and African Development Bank (AFDB).
Vice President Sambo commended Marubeni for the progress made so far in handling its power projects, but expressed concern over the lack of coordination among the contractors and other stakeholders handling power projects.
Earlier, the spokesperson of the delegation Mr. T. Mamiya, informed the Vice President that the Japanese government had an overseas development assistance programme under the Yen Credit, which offered cheap and concessional loans, which must be accompanied by feasibility studies on identified projects.
Mamiya further disclosed that the Japanese Government in 1984 funded a feasibility study on the possibility of setting up a Coal Power plant in Nigeria, the report of which had been submitted to the Ministry of Power. He used the opportunity to call on government to tap the facility in rehabilitating the Jebba Hydro Power Plant.