AfDB approves $115m loan to Abia for road rehabilitation, erosion control, waste management

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Efforts to tackle major infrastructural challenges in Abia State received a boost, over the weekend as the Board of Directors, African Development Bank Group, approved a loan of $115 million to help government tackle them, The Sun reports.

The facility will support the rehabilitation of roads, erosion control and preparation of solid waste management facilities in the state capital, Umuahia, and the commercial hub, Aba.

Lamin Barrow, Director General of the African Development Bank’s Nigeria Country Department, who made the disclosure in a statement at the weekend, said the projects will build resilience by providing the towns access to urban infrastructure services, including economic and social amenities.

“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”, Barrow noted.

Financing for the project, estimated at a total cost of $263.80 million, will come through an AfDB loan of $100 million; a Canada–African Development Bank Climate Fund (CACF) loan of $15 million; and a $125 million co-financing loan from the Islamic Development Bank. The Abia State government is expected to provide $23.8 million in counterpart funding for compensation to people affected by the project and implementation of a Resettlement Action Plan.

Details of the project, which is expected to be completed in 2029, show that a total of 248.46 km of road, comprising 58.03 km of roads in Umuahia and 190.43 km of roads in Aba, will be rehabilitated to asphaltic concrete standards at varying cross sections. 

“Erosion sites in Umuahia and Aba will be reinstated as well as preparatory 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”, the statement noted further.

With an estimated population of 553,000 and 814,000 respectively (2022 estimates), Umuahia, Abia State capital, and Aba, the commercial hub, are currently facing serious infrastructure challenges arising from decades of underinvestment amidst rapid urbanisation. The situation is aggravated by gully erosion and the emergence of huge piles of solid waste on the roads.

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 African Development Bank’s portfolio in Nigeria comprises 48 operations worth $4.2 billion. The national (Federal and States) operations account for 90% of the portfolio, for 41 projects amounting to $3.79 billion, while multinational operations constitute 10%, for 7 projects amounting to $0.41 billion. There are 24 Sovereign Operations ($2.36 billion or 56% of total commitments) and 24 Non-Sovereign Operations ($1.84 billion or 44%).

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