Against the backdrop of the criticism that greeted the plans by the Kwara State Government to access another N20billion loan, the state government on Thursday clarified that it had paid off the N17billion infrastructure bond obtained in 2009 even as it prepares to obtain a fresh N20billion bond for new projects.

The state government, in a statement by Senior Special Assistant to Governor Abdulfatah Ahmed on Media and Communications, Dr. Muyideen Akorede, said the N17billion bond was fully paid on August 5, 2014, following prompt payment to subscribers throughout the bond's five-year tenure.

The government maintained that repayment of the N17billion bond, which was obtained by the previous administration of Dr. Bukola Saraki, did not impose any undue burden on the state's finances as the bond maintained at issue rating of A and issuer rating of BBB- which signified the superior credit profile of the state government.

The statement listed the N17billion bond projects as Kwara State University, Harmony Advanced Diagnostic Centre, International Aviation College, remodelling of Ilorin Stadium Complex, phase one of Ilorin Water Reticulation Project, Ilorin Cargo Terminal as well as various urban and rural road and electrification projects.

Akorede stressed that long term borrowing such as bonds are cheaper and more reliable means of funding major capital projects. He maintained the proposed N20billion would finance innovative projects such as dualisation of Michael Imoudu to Gamo road, part completion of Kishi Kaiama road, the indoor sports hall of Ilorin Stadium and the new campuses for Kwara State University at Osi and Ilesha.

Other proposed projects are new secondary school classrooms across the state, equipment for the International Vocational Centre, Ajase Ipo, remodelling of General Hospital, Oro, as well as cottage hospitals, the state's counterpart funding for an Industrial Park which will generate 3,000 local jobs, provision of electricity transformers and take-off of Contributory Pension scheme which is a precondition for accessing other infrastructure funds.

Continuing, the statement emphasised that the proposed bond was a necessity given the challenges in the national economy and huge drop in monthly allocation, which have limited government's ability to fund new infrastructure, as well as the urgent need to begin closing the state infrastructure gap which is estimated at more than N200billion.

He therefore assured the public that the administration of Ahmed had taken steps not only to ensure the state government can afford the bond repayments without any undue pressure on its finances but also that it has reformed its revenue machinery to boost government's capacity to meet its other obligations to the people.