The approval followed the presentation of a report on the loan by Chairman, Senate Committee on Local and Foreign Debts, Senator Shehu Sani.
Presenting the report, Sani said the committee observed that the Ogun State DPO’s budget for the loan had been approved by the World Bank in 2016.
He added that the loan was further captured in the 2016-2018 borrowing plan, as approved by the National Assembly.
Sani noted that the committee also observed that the credit facility had an attractive low financing rate of 125 per cent interest, moratorium of five years and a five-year maturity term.
He said, “The facility has already been captured in the 2016-2018 Medium Term Expenditure Framework.
“It also has low and acceptable loan sustainability level, therefore it is eligible to borrow.
“The DPO loan will further help to enhance the capacity of the state government.
“The state has met the various conditions laid down by World Bank and as such, qualified for the loan.
“It has also put in place institutional framework for transparent and accountable budgetary and financial purpose.”
He explained that the projects to be funded by the facility would engender economic growth, increase revenue generation and create employment opportunities.
“The committee recommends that the Senate should go ahead and approve the loan as contained in the 2016-2018 external borrowing rolling plan of President Muhammadu Buhari,’’ Sani added.
The Deputy President of the Senate, Ike Ekweremadu, who presided over the plenary, put the report to voice vote and was adopted by the lawmakers.