The World Bank has approved a loan of $400m (N64.3bn) to 12 state water boards/corporations to improve their provision of portable water and enhance sanitation of the people in the beneficiary states.
According to the Senior Water and Sanitation Specialist, Water and Sanitation Programme, World Bank, Mr. Alexander Danilenko, the loan has a 30-year repayment time with a five- year grace period.
Danilenko, who spoke with our correspondent in Abuja on Friday, did not give the names of the state governments that would benefit from the loan.
He said, “It was approved by the bank based on the objective information. This is the first stage of the reform. The amount approved by the World Bank for the project is roughly $400m and the terms of the loan provides for up to 30 years repayment period with five years grace period.
“The decision was made by the ministry to select the first 12 states to benefit from the World Bank loan which will be signed hopefully very soon. The decision was done based on performance results, performance assessment and their commitment to the water sector reform.”
He also said the bank had commenced an assessment of the water boards/corporations to identify their level of financial needs.
Danilenko said, “We are working with the Federal Ministry of Water Resources to collect and analyse performance data and then present it to the public.
“The idea of this benchmarking work is to select utilities which will require assistance in the long run and it will be used for development of water reform in the country. The utilities are the state water boards and water corporations.”
The Permanent Secretary, Federal Ministry of Water Resources, Mr. Baba Faruk, in an interview with our correspondent, said an assessment of the performance of the water boards in 2011 and 2012 was being undertaken.
This, he stressed, would enable the agencies to ascertain their true position in the business.
Faruk said the programme would also enhance service delivery to the citizens.
He said, “The performance assessment of the water agencies for 2011 and 2012 has to be reviewed. We need to make it clear that this programme is set to establish a good foundation for annual performance assessment of water agencies.
“We are conscious that the emerging data, indicators and their analysis can be used for regular evaluation of the sector performance, overall development tasks, investment decisions, and financial support to the sector agencies.”