Less than one year after obtaining a 66 million
euros foreign loan which attracted criticism from
several sectors in September 2013, the Bayelsa State government is shopping for another vast loan
facility,this time from commercial banks
within Nigeria.


SaharaReporters has learned that the loan is meant
tofinance a cargo airport project near Amassoma in
Southern Ijaw Local Government Area of the state.
Already, the Debt Management Office
ranks Bayelsa as one of the most indebted
states, and the new loanproposal will escalate the
state’s debt burden if it sails through.


Governor Dickson last week forwarded a letter of
request to the House of Assembly, which has an all-
Peoples Democratic Party
membership, seeking itsapproval for the state
government to obtain the loan.
It has not been possible to ascertain the total cost of the airport project, but sources said the N40 billion loan facility would attract a total interest of N32billion to be serviced within eight years, bringing the total repayment burden to N72billion.
Observers question the rationale for taking loans
from commercial banks at the prevailing interest rate of 23 to 25 percent to finance a long term
infrastructure project such as a cargo airport.


Dickson has reportedly assured the Assembly that
the airport will be ready for use by the last quarter of next year.
He told them that the Federal Government's
contribution to the airport project will be the
construction of the terminal building, while its earlier contract awarded through the Niger Delta
Development Commission (NDDC) to sand fill the
site would continue.


"Out of the total estimated cost of the project, the
state government has already expended the sum of
N9.3billion for payment of compensation for land,
consultancy services, construction of run-way and
clearing of land, among others", Dickson’s
letter noted.


Sequel to the governor's request, the House of
Assembly on Tuesday invited relevant officials of thegovernment to provide details of the N40b loan
facility.
Those invited were the Commissioner for Finance,
Duate Iyabi, Attorney-General and Commissioner for Justice, Kemasuode Wodu; the Accountant
General,Tarimo Aseimo; and the Managing Director
of BayelsaAirlines, Henry Ungbuku.
Appearing before the Committee of the Whole,
presided over by the Speaker, Konbowei Benson, the four officials assured the lawmakers of the socio-economic benefits of the airport to the state and allayed fears that the loan may be diverted into
private pockets.


There were indications that the 24-member ‘rubber
stamp’ Assembly would quickly approve the
governor's request because a majority of them had
during the debate spoken in favour of the state
government standing as a guarantor for the state
airline.

Source
http://saharareporters.com/2014/07/09/governor-dickson-drags-bayelsa-further-n40-billion-debt

Debt is not a bad thing in itself but it is what you use that debt for.
Unfortunately, this is nothing but a white elephant considering the poverty and lack of access to basic education and essential public services in that dysfunctional state.
Most especially for a state which is under control the president and co-president(his wife).
This gives you a window into how the country is being run at the centre .
They repaint airports for billions while electricity is what is badly needed.
They let the road leading to the country's principal port and where they are raking in trillion rot, while they build a whit elephant millennium towers.
And so on

And this wasn't passed in one day.........
if it was my RIVERS STATE HOUSE OF ASSEMBLY...........
just thinking aloud.

Was about to rain criticisms on him, then I saw the source.

Sahara lieporters.