The Akwa Ibom House of Assembly, on Thursday in Uyo approved a request by the state government to borrow N5 billion for the completion of capital projects.
The approval followed a letter from Gov. Udom Emmanuel, dated March 29, 2016, seeking the approval of the House for the loan.
According to the letter, the loan was needed due to the current dwindling revenue accruable to the state government.
The letter added that the loan would be collected at very literal interest rate of 14.5 per cent with a payment period of 30 months.
The letter reminded the lawmakers that the money would be used to pay contractors to enable then sustain the current momentum of work and meet critical timelines before the rains set in heavily.
The House also granted N10 billion request for the state government to guarantee contractor’s finance scheme to Wizchino Engineering Limited, to enable the contractor progress with work on the Etinan-Ndon Eyo dual carriage road.
The facility, according to the letter, would be sourced from the United Bank for Africa Plc with an interest rate of 14.5 per cent with repayment period of 36 months.
After deliberations, members present unanimously gave approval for the requests.
The motion was moved by the House Leader, Mr Udo Keriean (PDP- Oruk Anam) and seconded by Mr Friday Iwok (PDP- Abak).
The Speaker, Mr Onofiok Luke, directed the clerk, to communicate the decisions of the House to the governor for action.
Luke urged the contractors handling the projects to ensure prompt completion of all the projects.