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Friday, June 14, 2024

World Bank cancels N20.6b Oyo flood project


The World Bank has cancelled its funding support to the Oyo State government on flood control worth US$50.1million (about N20.6billion).

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The fund was for the Second Pool of Long-Term Investment (PLT12) implemented under the Ibadan Flood Management Project (IUFMP).

In a letter to the Oyo State Governor Seyi Makinde, signed by the Country Director for Nigeria, Western and Central African Region, Shubham Chaudhuri, the World Bank cited the state’s inability to meet the project timelines despite “assurances”.

The July 30 letter, a copy of which The Nation obtained yesterday, reads in part: “I regret that we have had no choice but to determine that the project no longer has a credible path for substantial completion of PLT12 lots with IDA financing.

“Accordingly, and notwithstanding Oyo State commitment to fund any unfinished works beyond June 30, 2022, we hereby withdraw our conditional no objection for the PLT12 BERs, effectively making our funding unavailable for such contracts.

“We are constrained to inform your Excellency that, in coordination with the Federal Government, we intend to initiate the cancellation of the corresponding IDA loan proceeds of US$50.1 million.”

The institution said it remained committed to supporting the first phase of the flood project “to ensure that the remaining tasks are completed timely and to the highest standards”.

Anon-government organisation, the Ibadan ‘Koya, had in February warned that the state may lose the opportunity over delays in announcing the contractors.

Its Coordinator, Oladele Morufu and Secretary, Joel Adeoye, said in a statement yesterday: “One would have expected the project implementation unit (PIU) of IUFMP and Oyo State Government to work assiduously towards a full implementation of the project’s programme of works, so as to ensure achievement of the anticipated outcomes of community flood resilience in Ibadan and environs.”

Source: The Nation