THE Federal Government yesterday in Abuja signed a N46 billion credit financing agreement with the World Bank. Mr. Remi Babalola, Minister of State for Finance, who signed on behalf of government, said N38.8 billion would be for its roads development. He added that Kaduna State government would get N7.2 billion for rural access and mobility project.

Babalola said the International Development Association (IDA) credit was secured by government to increase access and mobility across the states. "The project consists of rehabilitation, up-grading and maintenance of 550 kilometres of selected roads and construction of about 132 bridges," he said. He said the credit which is interest-free, has a repayment period of 40 years and 10 years moratorium.

Babalola said that the credit would attract a commitment charge of 0.50 per annum, while a service charge of 0.75 per cent would be payable on the amount drawn.

He added that structures would be put in place to ensure effective management and implementation of the project which would run for eight years. According to him, World Bank lending to Nigeria stands at over 2.6 billion dollars.

He called on stakeholders to ensure early commencement of the project, to avoid the payment of commitment fee. Earlier, Onno Ruhl, World Bank Country Director, said that the credit would support government in its bid to rehabilitate roads to the tune of N23.4 billion.

He said that the projects, which are in phases, would cover 1,198 kilometres, equivalent of two lanes of selected roads. "The approach focuses on results and not inputs as with traditional civil works contracts.

"It places the responsibility on the service provider to be more conscientious in service delivery, since payment will be tied to service delivered," he said.

He explained that the project had been designed around the rural transport policy of government.

On Kaduna, he explained that the objective would improve road access for rural communities and assist them in assets management in a sustainable way.

He said the project would support the upgrading, rehabilitation and maintenance of about 400 kilometres of rural roads. "Kaduna is used as a pilot state for this approach, allowing scale-up of this support in other states once it delivers results ," Ruhl said.

Responding, Muktar Yaro, Commissioner for Finance, Kaduna State, who signed on behalf of the state, assured that the money would be judiciously utilised.

He said that rural road network were key to the development of any nation, especially the developing ones.

"Rural areas are home to a large number of persons, crops and other agricultural produce," he said.

He added that the state government was committing more funds to the rural access and mobility project.