China Development Bank has approved a loan of $254.76 million for the Kano-Kaduna railway project as part of its renewed move to boost its funding interventions in the Nigerian economy.
The development finance institution made this disclosure on Tuesday on its website and experts believe that the funding will aid the Federal Government’s current efforts to fast-track the completion of the multibillion Naira transportation line with the attendant implications for the nation’s economic growth.
The bank noted that construction work on the project remained ongoing and expressed its commitment to collaborating with the Federal Government to ensure timely disbursement of the fund and effective management of its subsequent phases.
The CDB stated: “Going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-ban management.”
The 203 kilometers railway project, which has been listed as a major initiative under the Third Belt and Road Forum for International Cooperation and is being executed by the China Civil Engineering Construction Corporation (CCECC), is a standard-gauge line designed to link Kano to Kaduna and Abuja and on completion that is expected to provide travellers in the Kano-Kaduna-Abuja axis an efficient transportation option, thereby enhancing the connectivity of the cities for business activities.
The Federal Government believes that on completion, the project will facilitate economic activities in the axis and support business enterprises in the movement of their products as well as create jobs for the unemployed during the construction and operational phases.
It would be recalled that last year, the Minister of Transportation, Saidu Alkali, hinted that China had committed to funding the Ibadan-Abuja and Kaduna-Kano sections of the Lagos-Kano railway line under the Belt and Road Initiative.
The Minister explained that most of the ongoing rail projects in the country were awarded under the Engineering, Procurement, Construction, and Financing (EPC+F) model, which requires the Federal Government to provide 15% counterpart funding while the balance will be sourced through loans.
To fulfil its funding obligations, the Federal Government has budgeted N44.4 billion for the completion of the Abuja-Kaduna, Lagos-Ibadan, and other railway projects nationwide.
