AfDB Approves $70m Loan for Road Project in Ebonyi

By Modupe Gbadeyanka

The sum of $70 million has been approved by the African Development Bank Group (AfDB) for the completion of a road project in Ebonyi State, south eastern part of Nigeria.

It was gathered that the loan was approved by the bank on Wednesday, April 24, 2019 and the credit facility will cover the rehabilitation and asphalting of a 51 km stretch between Nwezenvi and N’Doko, and part of the corridor between N’Doko and Ezzamgbo spanning 38.91 km. It is expected to be completed in five years.

While AfDB will provide $40 million, its co-financier, the Africa Growing Together Fund (AGTF), will contribute $30 million. The Islamic Development Bank is also providing Nigeria a loan of $80 million, while the Ebonyi State Government will provide $17.60 million, for a total project cost of $167.60 million.

The project will aid Ebonyi’s aspiration to develop special agro-industrial zones dedicated to processing of subsistence crops. It will improve road safety and accessibility of farming communities and small-scale industrial areas. Some 1,400 jobs will be created during the construction phase.

Once completed, the road network, which will cover a total 177.81 km, is expected to serve also as an international link between the State of Ebonyi and Nigeria’s eastern neighbour, Cameroun, in addition to connecting Ebonyi to Benue and Enugu.

In line with its High 5s priorities, the project attests to AfDB’s commitment to improve the quality of life of Africans by improving accessibility and road safety in its member countries.

The bank began financing transport projects in Nigeria in 1972 and has since provided the equivalent of $630 million in financing the sector, including a $69.9 million facility through the private sector.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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