SAG to borrow funds to complete Lusofonia Games infrastructure

The organisers of the Lusofonia Games which would be held in the state in January 2014 are facing a cash-crunch.
The state controlled Sports Authority of Goa has decided to secure a loan from another state government entity -- Economic Development Corporation -- to fund the ongoing infrastructure works for the Games in which 12 Portuguese-speaking countries would take part.
The works have to be completed by the next month and the state government owes Rs 104.14 crore to the contractors as of now.
SAG, at its general body meeting held today at Porvorim, chaired by Chief Minister Manohar Parrikar, approved the proposal to borrow Rs 150 crore from EDC at 11 per cent p.A.

The Games would be held across six venues from January 18 to 29.
"SAG has been entrusted with the mandate to take up infrastructural work for the Lusofonia Games and National Games for which budgetary provision of Rs 50 crore and Rs 63 crore respectively has been made," a senior SAG official said after the meeting.
While the entire infrastructural work would require Rs 265 crore, the state government, which is facing financial constraints due to drying up of mining revenue, has released only Rs 72 crore so far.
"The current bills of the contractors will have to be cleared from time to time as per progress of the work and as no further financial assistance has been received by SAG from Goa government by the way of grants, the only option left was loans," the official added.