AfDB Approves $115m Loan for Abia State for Road Rehabilitation, Erosion Control, Solid Waste Management 

The Board of Directors of the African Development Bank Group (AfDB) has approved a loan of $115 million to support a major road rehabilitation project in Abia State.

The project would see the rehabilitation of roads, erosion control infrastructure and preparation of solid waste management facilities in the state capital, Umuahia, and the commercial hub, Aba.

The bank in a statement said financing for the project, estimated at a total cost of $263.80 million, would come through an African Development Bank 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.

It noted that the Abia State government would provide $23.80 million in counterpart funding for compensation to people affected by the project and implementation of a Resettlement Action Plan.

It stated that under the project, which was expected to be completed in 2029, a total of 248.46 km of road – 58.03 km of roads in Umuahia and 190.43 km of roads in Aba – would be rehabilitated to asphaltic concrete standards at varying cross sections. It averred that erosion sites in Umuahia and Aba would be reinstated as well as preparatory studies undertaken for private sector participation in solid waste management for the two cities.

It revealed that the project would 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.

According to the statement, “With an estimated population of 553,000 and 814,000 respectively (2022 estimates), Umuahia, capital of Abia State, 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 percent 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 per cent 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 Director General of the African Development Bank’s Nigeria Country Department, Lamin Barrow, said the project would build resilience by providing the towns access to urban infrastructure services, including economic and social amenities.

Barrow said: “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.”

The statement further explained that African Development Bank’s portfolio in Nigeria comprises 48 operations worth $4.2 billion.

The national (Federal and States) operations account for 90 per cent of the portfolio, for 41 projects amounting to $3.79 billion, while multinational operations constitute 10 percent, for 7 projects amounting to $0.41 billion.

The statement added that there are 24 Sovereign Operations ($2.36 billion or 56 percent of total commitments) and 24 Non-Sovereign Operations ($1.84 billion or 44 percent).

Ugo Aliogo

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