DELTA STATE ASSEMBLY RESUMES SITTING, APPROVES N3bn SHORT TERM LOAN FOR PRIORITY ROAD PROJECTS

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The State House of Assembly resumed plenary on Tuesday after a break occasioned by the 2019 general elections with the approval of Governor Ifeanyi Okowa’s three billion naira short term loan request for the  funding of priority road projects.

The House also approved the Governor’s request to guarantee a credit facility for the Delta Transport Service Limited, operators of Delta Line.

Governor Okowa, in a letter to the House, said there was urgent need for the state government to assist some of its road contractors in accessing funds to facilitate the execution of critical projects before the rains set in.

He said the request became expedient due to about three billion naira drop in federation accounts receipt in January 2019 when compared to December 2018 receipts which had hindered planned disbursement to the contractors .

The Governor noted that most of the contractors were already on site and had generated payment certificates for jobs already executed which had yet to be paid for.

He said the funds were required to make progress in the execution of critical projects, adding that the State Executive Council at its meeting of February 5, 2019 considered and approved that the state government should support some contractors handling critical priority projects .

Governor Okowa said the state government would bear the cost of obtaining the short term loan facility from Zenith Bank as requested by the contractors.

The Majority Leader ofthe House, Honourable Tim Owhefere moved separate motions for the House to receive the governor’s letter for further consideration and approval  .

The motion was adopted through a voice vote after it was seconded by Honourable Emeka Nwaobi and Honourable Johnson Erijo .

For the Delta Transport Service, the  Governor said in a bid to revamp the ailing transport company which had over the years relied on continuous funding by the state government to meet salaries and other recurrent expenditure obligations as well as capital expenditure despite being a business that should generate revenue, government decided to partially privatize the outfit.

He said the state government sold sixty percent equity of Delta line to God is Good Motors in a public private partnership arrangement with the state government retaining forty percent equity in the company.

The Governor said sequel to the sale, which involved defrayment of outstanding commitments, including salary arrears, the new management of Delta line submitted a five year business plan which among other things envisaged an immediate capital injection of four point nine billion naira for the procurement of one hundred and thirty commuter buses as well as the renovation and establishment of eighteen terminals with information technology infrastructure and furnishing across the country.

The House approved the request following a motion moved by the Majority Leader, Honourable Tim Owhefere seconded by Honourable Peter Onwusanya and Honourable Emeka Elekeokuri.

Earlier, the Speaker,;Honourable Sheriff Oborevwori, welcomed members back to plenary after the general elections and commended Deltans for the reelection of Governor Ifeanyi Okowa and all PDP candidates for the elections.

Honourable Oborevwori said the landslide victory of Governor Okowa was a vote of confidence passed on him by Deltans.

He congratulated members of the House who were victorious in their elections and prayed for those who had challenges with their election.

The Speaker also congratulated all Delta state Senators-elect and the House of Representatives members-elect.

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