Date: 2012-01-24

1) In 2009, the previous administration sought funding for phased development projects through a Securities and Exchange Commission(SEC) approved N30b bond. 

2) Government raised N17b to pursue publicised projects some of which were based on public private partnership.

3) However, owing to the global economic recession, the expected participation from foreign partners for projects such as the Kwara Truck Plaza, International Diagnostic Centre and Phase 2 of the Kwara Agriculture Project failed to materialise.

4) As a result, the state government secured SEC approval to cease the Commercial Agriculture Phase II, the Truck Plaza and the Secretariat Phase II. The N4.5b saved was then used for the Urban Roads Project, Ilorin Street lights Project, Rural and Feeder Roads, Kwara Mall Project, Ilorin Township Stadium and preliminary work on the Kwara Vocational Centre, again with regulator approval.

5) In line with the strategy of continuity, the current administration decided to raise the second tranche of the N10b from the money market since the tenor, rate and terms were similar to the bonds earlier utilised.

6) The lending bank agreed the loan only after it was satisfied the administration has the capacity to repay during its tenure and following a clean bill of health issued by the Fitch rating agency.

7) The administration decided to take N10b rather than the remaining N13b based on its desire to repay the loan within its tenure and expected increase in Internally Generated Revenue.

8) The N10b is to be used to complete existing projects and execute new ones. These include the International Diagnostic Centre, KWASU, Renovation of 5 General Hospitals, capitalisation of Kwara Holdings (which is to warehouse the state government's investments in about 20 organisations), the Irrigation Project, the International Vocational Centre and Phase II of the Ilorin Water Distribution Project.

9) All projects were clearly and publicly identified as phased. For example, Universities like KWASU are LONG TERM projects. You don't complete them in 3 Years! The funds allocated to KWASU in this tranche will go towards building a world-class Faculty of Engineering in collaboration with the globally-recognised MIT. 

The above facts were made public when government raised the bond issue and can be verified from SEC.