Governor Emmanuel Uduaghan

Various crucial infrastructural development initiatives have been mapped out by the Delta State Government, following the N50 billion Bond it raised recently from the Stock Market; writes Francis Ugwoke

After months of bureaucracy, the Securities and Exchange Commission (SEC) recently okayed the N50 billion bond issued by the Delta State Government. This was after the state government had met regulatory conditions spelt out by the Commission and other agencies on such financial matters.

The bond had been subject of criticism by opponents who felt that it was not necessary.  But this has often been the case in some of the states where the ruling government had attempted to raise funds from the bond market.

For instance, the opposition parties had criticised ruling governments in Lagos, Kwara, Imo, Ebonyi, Edo and Bayelsa where they moved to raise bonds. In the case of Ogun and Bayelsa, the opposition was very strong. In the case of Delta, the opposition Democratic People’s Party (DPP) led the move to criticise the bond issue.

Bonds Rationale

For every organisation, sourcing loans from the banks can be a nightmare. This is because the banks charge high interest rates. Apart from this, banks hardly give long term loans. This is the gap that bonds have come to fill. They are cheaper and beneficiaries are offered long terms within which to pay back. 

One thing about bonds is that they ensure enhanced fiscal discipline as those seeking them also make available a list of projects for which the money will be used for. This is usually scrutinised by regulatory authorities.

The Delta bond has Access Bank as the Lead Issuing House. There are seven other co-issuing houses, including First City Merchant Bank, UBA Capital, Zenith Capital BGL, Vetiva Capital Management Limited, Greenwich Trust Limited and ICMG Securities Limited.

Apart from this list, Afri-Bank Trustees and Asset Management Company Limited leads a team of six reputable trustees to the bond. It is a global practice that organisations or governments who have challenges of executing long term development projects resort to bonds.

Planned Devt Projects 
The plan of Delta State government is to address the issue of infrastructure development. The State Governor, Dr. Emmanuel Uduaghan, who recalled that the challenge had been in dealing with the infrastructure, assured citizens that with the bond, this would be addressed.

 “Now that we have access to N50 billion, we will fast track all our infrastructure development. One area we are going to lay emphasis on is education”, he said at the completion meeting in Abuja.

The Commissioner for Information, Mr. Chike Ogeah, re-echoed what the Governor promised, and identified infrastructure developments where the fund would be applied, including education. In giving its approval, the regulatory authorities had also tied the bond to execution of infrastructural and capital projects.

Schools Rehabilitation
One major problem that the bond would address is in the area of renovation and rehabilitation of old schools that may have been in existence for decades. Some of the schools have suffered dilapidation and would need rehabilitation.

The state government also intends to construct new schools apart from the existing ones. In a list compiled by the Directorate of Special Infrastructure, Asaba, some of the 50  primary and secondary schools include Abu-Ato Primary School, New Secondary School, GRA; Asagba Primary School; Government College Ughelli; Etako Primary School, Ugheli; and Ogodo Primary School, Sapele.

Others include Olodi Primary School, Okumagba; Okugbe Primary School Warri; construction of Ozaha Model Primary School, Oleh, Model Primary School Abigborodo; Ethiope Model Primary School; Mosogar Primary School, Mosogar, Eke Model Primary School, Utagba-Ogbe, Kwale and a Model Primary School, Burutu.

Ogeah disclosed that the education sector would also get a huge boost with the construction of a School of Maritime Technology, School of Engineering and Senate Building for Delta State University at Abraka and construction of four new Polytechnics.

Road Construction
Among the infrastructural and capital projects to be executed with proceeds from the bond, according to the Commissioner, include the dualisation of the Ughelli-Asaba Expressway. The state government will also dualise Effurun-Eku Road and Ughelli-Asaba Road.

Others include partial funding support for construction of Sapele-Abigborodo Road; township roads and water projects. As part of the road construction project, a bridge is to be constructed at Abigborodo in the state.

On dualisation of Ughelli-Absaba Road, Ogeah said the execution of the project remains a critical arm of the vision of ringing the entire state with well-paved roads. He noted that the project is running on schedule and money being released to the contractors based on professional assessment and verification of work done. The Commissioner also disclosed that so far N19.586 billion has been released as the project is close to completion.

Health Care
Health care needs of the people will also be addressed by the state government with the proceeds from the bond. This is with the rehabilitation of Eku Baptist Hospital, Maternal and Childcare Centre, Warri, Maternal and Childcare Centre, Ekpan, among others.

Transportation
On transportation, Ogear said taxis, Marco Polo and Toyota Hiace buses and boats will also be acquired with proceeds from the bond. According to the Commissioner, this arrangement will make transportation easier in the state.

Use of Fund
Ogeah said the state government would make judicial use of the bond for development purposes. According to him, “The entire proceeds from the bond are not subject to any alteration or review during disbursement. Only the projects listed under 18 sub-heads and approved by the relevant regulatory authorities will benefit from the fund.” 

He added, “Governor Uduaghan has remained focused on his covenant with the people of Delta State providing them first class infrastructure like the Asaba International Airport, which is not only home to two airlines that operate daily scheduled flights, but has been acclaimed as the best and most modern airport in the country.

“All the projects slated for execution under the bond are in the public domain and are verifiable”, he said, assuring listeners that the state government was committed to meeting the aspirations of the people in terms of development.

Ogeah said Governor Uduaghan wants stakeholders to monitor the execution of developmental projects in the state, to be able to hold government accountable where it fails to meet up.