Abia state government will receive $240 million ($185 billion) in foreign loan to finance road, erosion and waste management projects, one of the funders said.
– Key figures to note
The projects are estimated at $263.80 million and will be funded by the African Development Bank ($100 million), Canada–African Development Bank Climate Fund ($15 million), and a $125 million co-financing loan from the Islamic Development Bank.
The Abia government will provide $23.80 million in counterpart funding. The money will be used to compensate and resettle people affected by the project.
The AfDB said on Monday its board has approved its share of the loan for the projects in the state capital Umuahia, and the commercial hub, Aba.
The project, expected to be completed in 2029, will see 248.46 km of road (58.03 km of roads in Umuahia and 190.43 km of roads in Aba) rehabilitated to asphaltic concrete standards.
Erosion sites in Umuahia and Aba will be reinstated as well as preliminary studies undertaken for private sector participation in solid waste management for the two cities.
The project will also include capacity building, project management and development of social infrastructure such as the rehabilitation of schools and the provision of sanitation facilities in schools, community markets and hospitals.
– Why this matters
When completed, the 1.37 million population in these two cities will benefit from reduced travel time, reduced vehicle operating costs and lower transport cost. The project will also create 3,000 temporary jobs (30% for women) at the construction phase, and about 1,000 permanent jobs during the operational phase.
The permanent jobs will particularly benefit the youth, who will make up 50% of the project. They will be trained in contract management by the State Youth Road Maintenance Corps for road maintenance, a body of young Abia engineers drawn from the 17 Local Government Areas of the State.
“The results from implementation of the project will help expand access to economic and social amenities in the two cities, and thereby contribute to building sustainable and liveable cities,” said Lamin Barrow, director general of the AfDB’s Nigeria country department.
– Learn more
Abia state had an outstanding debt profile of N105 billion between 2015 and the second quarter of 2022, making it the 11th most indebted of Nigeria’s 36 states.
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