By CHARLES IWUOHA

The Abia State Government has announced that the long-awaited USD 125 Million Islamic Development Bank (IsDB) financing facility for the Abia State Integrated Infrastructure Development Project has been approved by the Federal Executive Council (FEC).

This approval marks a major milestone in a project that has undergone extensive consultations and procedural steps, and is a critical component of the overall co-financing arrangement for the State?s ambitious infrastructure development drive.

The 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. 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 is contained in a statement issued on Thursday by Otti?s Chief press Secretary, Ukoha Njoku Ukoha and made available to journalists in Umuahia.

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.

His Excellency, Dr. Alex Otti, Governor of Abia State, expressed appreciation to: President Bola Ahmed Tinubu for his trust and pragmatic leadership; The National Assembly, for approving the borrowing plan; The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, for his leadership in concluding the financing process; Secretary to the Government of the Federation and Attorney General of the Federation for their roles in facilitating the process; The VP IsDB, Dr. Mansur Muhktar who not only reached out in November 2023, but saw to it that internal approvals were received on the request for the facility.

Governor Otti further noted that this landmark project will complement his administration?s ongoing infrastructural development initiatives, aimed at modernizing Abia?s transportation network, revitalizing urban centres, and positioning the State as a hub for sustainable economic growth.

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