The loan request was made by the administration of the former governor, Okezie Ikpeazu, who exited office on 29 May.
The African Development Bank (AfDB) has approved a loan request of $115 million for the Abia State Government for its road rehabilitation, erosion control infrastructure projects and solid waste management.
The loan request was made by the administration of the former governor, Okezie Ikpeazu, who exited office on 29 May.
The AfDB's board of directors, in a statement on Friday, said the projects would also include capacity building, development of social infrastructure such as the rehabilitation of schools and the provision of sanitation facilities in schools, community markets as well as hospitals in the state.
"With an estimated population of 553,000 and 814,000, respectively (2022 estimates), Umuahia, the 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," the AfDB said.
"When completed, the 1.37 million population in these two cities will benefit from reduced travel time, reduced vehicle operating costs and lower transport costs.
"The project will also create 3,000 temporary jobs (30% 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% of the project," it stated.
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The bank said the financing for the project, estimated at a total cost of $263.80 million, would come through an AfDB loan of $100 million, a Canada-African Development Bank Climate Fund loan of $15 million, and a $125 million co-financing loan from the Islamic Development Bank.
It added that the 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.
The intercontinental bank stressed that under the project, expected to be completed in 2029, a total of 248.46 km of road - 58.03 kilometres of roads in Umuahia and 190.43 kilometres of roads in Aba - would be rehabilitated to asphaltic concrete standards at varying cross sections.
Erosion control sites in Umuahia and Aba would be reinstated, and preparatory studies were undertaken for private sector participation in solid waste management for the two cities, it said.
The Director General of the AfDB's Nigeria Country Department, Lamin Barrow, said the project would build resilience by providing the town access to urban infrastructure services, including economic and social amenities.
"The results from the 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," Mr Barrow was quoted as saying in the statement.
