The African Development Bank Group has granted a loan of $115 million to Abia State, Nigeria, to address critical infrastructure challenges. The funding will support the rehabilitation of roads, erosion control measures, and the development of solid waste management facilities in the state capital, Umuahia, and the commercial hub, Aba.
Lamin Barrow, the Director General of the African Development Bank’s Nigeria Country Department, announced the approval of the loan in a statement over the weekend. The projects aim to enhance the resilience of the towns by improving access to urban infrastructure services and essential social amenities.
According to Barrow, the implementation of these initiatives will expand access to economic and social amenities in Umuahia and Aba, contributing to the development of sustainable and livable cities in Abia State.
The total estimated cost of the infrastructure projects is $263.80 million. The financing will be sourced from various entities, including a $100 million loan from the African Development Bank, a $15 million loan from the Canada-African Development Bank Climate Fund (CACF), and a $125 million co-financing loan from the Islamic Development Bank. Additionally, the Abia State government will provide $23.8 million in counterpart funding, which will be allocated for compensating individuals affected by the projects and implementing a Resettlement Action Plan.
The loan approval from the African Development Bank signifies a significant boost to Abia State’s efforts to address its infrastructural needs. The funding will help enhance transportation networks, combat erosion, and improve waste management, ultimately contributing to the socio-economic development of the state.
The government of Abia State expressed gratitude to the African Development Bank for its support and pledged to utilize the loan effectively to achieve the desired outcomes of improved infrastructure and enhanced quality of life for its residents.
The implementation of these infrastructure projects is expected to have a positive impact on Abia State’s economy, attracting investments, improving connectivity, and fostering sustainable urban development.
