AfDB grants $115 million loan to support Abia development projects

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The African Development Bank Group (AfDB) has indeed approved a loan of $115 million for Abia State. The loan is specifically designated for projects related to road rehabilitation, erosion control, and solid waste management.

According to the statement issued by the AfDB’s board of directors, these efforts are expected to generate long-term employment opportunities, with a particular focus on the youth population.

“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.”

553,000 and 814,000 respectively (2022 estimates), Umuahia, capital of Abia State, and Aba, the commercial hub, are currently facing serious infrastructure challenges arising from decades of underinvestment amidst rapid urbanisation,” AfDB said.

“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 percent 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 per cent 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 (LGA) of the State.”

The financing for the project in Abia State is estimated to have a total cost of $263.80 million.

The funding will come from multiple sources, including an AfDB loan of $100 million, a $15 million loan from the Canada-African Development Bank Climate Fund (CACF), and a co-financing loan of $125 million from the Islamic Development Bank.

Additionally, the Abia State government will contribute $23.80 million as counterpart funding, which will be used for compensation to affected individuals and the implementation of a Resettlement Action Plan.

The project aims to rehabilitate a total of 248.46 kilometers of road, with 58.03 kilometers in Umuahia and 190.43 kilometers in Aba, to asphaltic concrete standards at varying cross sections.

It also includes addressing erosion sites in Umuahia and Aba, as well as conducting preparatory studies for private sector involvement in solid waste management in the two cities.

Furthermore, the project will focus on capacity building, project management, and the development of social infrastructure.

This will involve the rehabilitation of schools, the provision of sanitation facilities in schools, the development of community markets, and improvements to hospital facilities.

Lamin Barrow, the Director General for Nigeria Country Department at AfDB, emphasized that the project will enhance resilience by providing urban infrastructure services and economic and social amenities to the towns in Abia State. The project is expected to be completed by 2029.

“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.”