The Federal Executive Council (FEC) yesterday approved €64.7 million loan from French development agency for a national urban water sector reform project in Kano state.
The approval was granted during the FEC meeting presided over by President Muhammadu Buhari at the State House, Abuja.
The meeting was attended by the vice president, Yemi Osinbajo, the Secretary to the Government of the Federation, Boss Mustapha, Chief of Staff, Abba Kyari, Head of Service of the Federation, Winifred Oyo-Ita, National Security Adviser, Babagana Monguno and 28 ministers.
Briefing State House journalists at the end of the meeting that lasted for over two hours, the Minister of Finance, Zainab Ahmed, said the project was conceived to address the water supply challenges in Kano state.
The minister who said over 1.5m persons are expected to benefit from the project described the loan as a very low-cost facility for a very long time.
"The project is to rehabilitate and build the infrastructure needed to increase access to water services to the population in greater Kano and to help improve key sector reforms to ensure the sustainability of the project.
"The Kano state ministry of water resources through a state management committee is to implement the project. The funding is a facility to the federal government of Nigeria. The federal government will be lending it to Kano state at the same terms of conditions," she said.
"The facility of €64,740,000 is from the French development agency and the terms of conditions of the facility are. One, it's at an interest rate of 1.02 percent with a repayment period of 20 years and a seven-year moratorium period. There is also a fee of 0.25 percent for appraisal and a commitment fee of 0.25 percent," she said.