$1.85b loan not meant to mortgage Kano’s future, says Ganduje
Governor Abdullahi Ganduje of Kano State has said that the $1.85 billion development loan obtained by the state government from China is not meant to mortgage her future, as insinuated by political detractors.
Ganduje who made the clarification recently while inaugurating a 13-member committee to ensure effective implementation of the Kano Metropolitan Light Rail project, to be executed by a joint venture of China Railway 18th Bureau Group Ltd, and China Railway Construction Electrification Bureau Group, added that the loan was of concessional nature, and of favorable terms
Ganduje said that from its improving revenue earnings, the state government realised that it can pay the 15 per cent funds required for the project, adding that the rail project will pay for itself in the long term and leave a lasting legacy for future generations.
He said government had decided to take the loan to finance the project because developed countries across the world resort to development financing, in the form of bank loans, to finance capital intensive developmental projects.
“The interest on the loan will not be more than three per cent while the loan has a repayment period of 15 years. The Chinese Bank will give 85 per cent of the contract sum, while Kano State government will provide the remaining 15 percent,” the governor stated.
Governor Ganduje said the implementation committee is expected to liaise with the contractors, the investment bankers, coordinators of the project and the Federal Government that guaranteed the project.