The Federal Executive Council on Wednesday approved a contract for the rehabilitation of the Obudu Dam in Cross River State in the sum of N1.65bn.

This was disclosed by the Minister of Information, Mr. Labaran Maku, and his counterpart in the Water Resources ministry, Mrs. Sarah Ochekpe, who briefed State House correspondents on the outcome of the FEC meeting presided over by President Goodluck Jonathan.

Maku said the dam, which belongs to the Federal Government, was in a state of disrepair, hence the need to rehabilitate it.

He added that the state of the dam had hindered the Cross River State Government from carrying out its regional urban water supply project, which would cover four communities of Obudu, Ogoja, Ikom and Calabar.

Maku said the state government had since 2005 received an International Development Association loan to develop the regional water scheme to meet the needs of the communities.

Ochekpe said the rehabilitation of the dam, which would provide 1.35 million cubic litres of water,would be carried out under a World Bank-assisted arrangement.