World Bank has cancelled its funding support worth US$50.1 million (about N20.6 billion) to Oyo State Government on flood control.
The fund was for the Second Pool of Long-Term Investment (PLT12) implemented under the Ibadan Flood Management Project (IUFMP).
In a letter dated July 30, and addressed to Governor Seyi Makinde, World Bank cited the state’s inability to meet the project timelines despite “assurances.”
The letter signed by , by the Country Director for Nigeria, Western and Central African Region, Shubham Chaudhuri, read in part: “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.
“Accordingly, and notwithstanding Oyo State commitment to fund any unfinished works beyond June 30, 2022, we hereby withdraw our conditional no objection for the PLT12 BERs, effectively making our funding unavailable for such contracts.
“We are constrained to inform your Excellency that, in coordination with the Federal Government, we intend to initiate the cancellation of the corresponding IDA loan proceeds of US$50.1 million.”
World Bank said it remained committed to supporting the first phase of the flood project “to ensure that the remaining tasks are completed timely and to the highest standards”.
A non-governmental organisation, ‘Ibadan Koya,’ had in February warned that the state may lose the opportunity over delays in announcing contractors.
The Coordinator and Secretary of the group, Oladele Morufu Joel Adeoye respectively, said in a statement on Tuesday that: “One would have expected the project implementation unit (PIU) of Ibadan Urban Flood Management Project (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.”