The Senate, yesterday, expressed reservations over President Goodluck Jonathan’s request for a $7.905billion foreign loan for Pipeline Projects from 2012 to 2014.
The request which eventually received the nod of the Senators was referred to the committees on local and Foreign Debts as well as Finance which were also directed to get details of the projects.
Leading the debate on the request titled “inclusion of the Pipeline Projects into the Medium Term (2012-2014) external borrowing” the Senate Leader, Senator Victor Ndoma-Egba, noted that the projects were specific initiatives designed to put the economy back on track through growth and employment activities geared towards transforming the fortunes of Nigerians by the implementation of the governments transformation agenda.
He stated that the pipeline projects were at various stages of completion and that a total external pipeline borrowing in the amount of US $7, 905, 690, 000.00 or US $2.64billion a year being cumulative facilities offered for the completion of the pipeline projects are as follows; World Bank, $2.975bn; African Development Bank, $731.23m; Islamic Development Bank, $672.85m; French Development Agency, $56.61m; and Exim Bank of China $3billion.
During the deliberations, senators raised concerns about the loan and pointed out that most items on the project did not require the fund even as they gave their backing for the external borrowing.
Senator Ita Enang said the projects appear not to cover all the states, while Senator Nkechi Nwaogu described most of the items as intangible, and stressed that what Nigerians needed at this point were more of capital projects like irrigation.
Senator Ayogu Eze, pointed out that alternative transport system like rail and waterways were not adequately captured in the projects, and Sen. Ahmed Lawan, who also supported the loan, however cautioned that implementation of the loans must be adhered to. He accused the Minister of Aviation of diverting a cargo airplane project meant for the North East to the South-South an allegation that Senator James Manager refuted.