Three investment outfits, Tinapa Business and Leisure Resort, Obudu Ranch Resort and the Cross River State Water Board Limited are yet to yield returns to the state government some years after opening for business, the state Commissioner for Finance, Rev. Caifas Etim has revealed.
Fielding questions from journalists in Calabar, Etim said: “These investments are products of loans obtained from the capital market and commercial banks and have a relatively long period of repayment. Whatever is generated now is used to service the loans pending when the total indebtedness is offset.”
It would be recalled that a loan of $116 million was sourced from the African Development Bank (ADB) by one of the military administrations of the state to provide water in Calabar and beyond, while a N4.6 billion bond was obtained to develop the Obudu Ranch Resort and over N80 billion loaned from commercial banks and other sources to develop Tinapa.
But currently, the Federal Government which guaranteed these loans was already deducting at source from the allocation to the state government as a means of repaying the loans as the repayment period was due.
Consequently, the state was left with just a little to run the business of governance.
Etim said because the loans are still being serviced, the three investment outfits for now cannot produce revenue for the state let alone profit hence what they generate do not reflect on the Internally Generated Revenue (IGR) of the state government.
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