Abia State government has commended President Bola Ahmed Tinubu and members of the Federal Executive Council (FEC) for their collective and individual roles in facilitating $125million Islamic Development (IsDB) loan to the state.
The facility, our correspondent gathered is for Abia State Integrated Infrastructure Development Project (ABSIID).
The governor of the state, Dr. Alex Otti in a statement, while thanking President Tinubu for his trust and pragmatic leadership, disclosed that the loan which has low interest rate, marks a major milestone in a project that has undergone extensive consultations and procedural steps, noting that it’s a critical component of the overall co-financing arrangement for the state’s ambitious infrastructure development drive.
According to the state government, “project’s total cost is USD 263.80 million, comprising, USD 125 million from the Islamic Development Bank [ IsDB], USD 100 million from the African Development Bank (AfDB), USD 15 million from the Canada–Africa Development Bank; and USD 23.80 million counterpart funding from the Abia State Government.
“The IsDB facility is particularly significant because its financing agreement must be signed for the project to proceed, given the integrated nature of the co-financing structure.
“The AfDB and Canada–Africa Development Bank financing agreements have already been concluded, with the AfDB loan agreement signed earlier this year.
“Under the project, the IsDB financing will support the construction of approximately 126 kilometres of road network in Aba and 35.57 kilometres in Umuahia, including a link road between the two cities, as well as critical erosion control works within the project sites.
“When completed, the project will reduce travel time in Abia’s busiest urban corridors, Create over 3,000 jobs for local residents, reduce greenhouse gas emissions, Improve access to social services and Attract private sector investment.
“The project is owned by the Abia State government and will be executed through the State Ministry of Works, under the supervision of the State Steering Committee.
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“The Steering Committee will provide policy direction to the State Project Implementation Unit (SPIU) and all stakeholders.
“Procurement for the IsDB-financed components, covering civil works and consultancy services, will follow the Bank’s procurement guidelines, with disbursements made directly to contractors and consultants.”
“This milestone follows sustained engagement and intergovernmental coordination.
“This approval is also a direct complement to the visionary infrastructural development agenda of the administration. Since assuming office, the governor has made the modernization of Abia’s road networks, the revitalization of urban centres, and the integration of sustainable development principles a cornerstone of his administration.
“The IsDB facility will strengthen these ongoing efforts, accelerating the pace of road reconstruction in Aba and Umuahia, addressing critical erosion challenges, and laying the groundwork for an integrated transportation network that supports commerce, improves quality of life, and enhances the State’s competitiveness.