The World Bank has canceled a $50.1 million grant to the government of Oyo State for flood control (about N20.6billion).
The money was set aside for the Ibadan Flood Management Project’s Second Pool of Long-Term Investment (PLT12) (IUFMP).
The World Bank cited the state’s inability to meet project timelines despite “assurances” in a letter to Oyo State Governor Seyi Makinde, signed by Shubham Chaudhuri, Country Director for Nigeria, Western and Central African Region.
“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,” the July 30 letter reads in part, according to a copy obtained by The Nation yesterday.
“As a result, despite Oyo State’s commitment to fund any unfinished works beyond June 30, 2022, we hereby withdraw our conditional no objection for the PLT12 BERs, effectively removing our funding from such contracts.
“We are compelled to inform your Excellency that, in coordination with the Federal Government, we intend to initiate the cancellation of the IDA loan proceeds in the amount of $50.1 million.”
The bank stated that it would continue to support the flood project’s first phase “to ensure that the remaining tasks are completed on time and to the highest standards.”
The Ibadan ‘Koya, a non-governmental organization, had warned in February that the state might lose the opportunity due to delays in announcing the contractors.
“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,” the project’s coordinator, Oladele Morufu, and secretary, Joel Adeoye, said in a statement yesterday.