African Development Bank Approves $115 Million Loan for Road Rehabilitation Project in Abia State
ABUJA/Nigeria: The Board of Directors of the African Development Bank Group has given the green light to a loan of $115 million in support of a significant road rehabilitation endeavor in Abia State, Nigeria. This project aims to revamp roads, implement erosion control infrastructure, and establish solid waste management facilities in Umuahia, the state capital, and Aba, the commercial hub.
The overall cost of the project is estimated to be $263.80 million. The financing will be sourced from multiple channels, 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 co-financing loan of $125 million from the Islamic Development Bank. Additionally, the Abia State government will contribute $23.80 million as counterpart funding for compensating those affected by the project and implementing a Resettlement Action Plan.
Expected to be completed by 2029, the project will focus on rehabilitating a total of 248.46 kilometers of road, with 58.03 kilometers in Umuahia and 190.43 kilometers in Aba. These roads will be upgraded to asphaltic concrete standards at varying cross sections. Furthermore, erosion sites in both cities will be addressed, and preparatory studies will be conducted to facilitate private sector involvement in solid waste management. The project will also include capacity building, project management, and the development of social infrastructure, such as the rehabilitation of schools and the provision of sanitation facilities in schools, community markets, and hospitals.
Umuahia and Aba, with estimated populations of 553,000 and 814,000 respectively (as of 2022), have been grappling with severe infrastructure challenges resulting from decades of underinvestment amidst rapid urbanization. The situation has been exacerbated by gully erosion and the accumulation of large amounts of solid waste on the roads.
Once the project is finalized, the approximately 1.37 million inhabitants of these two cities will benefit from reduced travel time, lower vehicle operating costs, and decreased transportation expenses. The endeavor is also expected to generate 3,000 temporary jobs, with 30% allocated to women, during the construction phase. Additionally, around 1,000 permanent jobs will be created during the operational phase, with a focus on benefiting the youth who will account for 50% of the project’s workforce. These individuals will receive training in contract management from the State Youth Road Maintenance Corps, a group of young Abia engineers hailing from the State’s 17 Local Government Areas, responsible for road maintenance.
Lamin Barrow, Director General of the African Development Bank’s Nigeria Country Department, emphasized that the project will enhance resilience by providing urban infrastructure services, along with economic and social amenities, to the towns. Barrow stated, “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 livable cities.”
The African Development Bank’s portfolio in Nigeria comprises a total of 48 operations amounting to $4.2 billion. The national operations, encompassing projects at both the federal and state levels, account for 90% of the portfolio, with 41 projects totaling $3.79 billion. Meanwhile, multinational operations make up the remaining 10%, covering 7 projects worth $0.41 billion. Among these operations, there are 24 Sovereign Operations, representing $2.36 billion or 56% of the total commitments, and 24 Non-Sovereign Operations, amounting to $1.84 billion or 44%.
