The Abia State Government has announced the approval of a $125 million Islamic Development Bank (IsDB) loan facility by the Federal Executive Council at its meeting on Wednesday, 13 August.
Mr Ukoha Njoku, Chief Press Secretary to Governor Alex Otti, disclosed this in a statement issued to journalists in Umuahia on Thursday.
Ukoha said the facility would be utilised for the State Integrated Infrastructure Development Project.
“This approval marks a major milestone in a project that has undergone extensive consultations and procedural steps.
“The fund is a critical component of the overall co-financing arrangement for the state’s ambitious infrastructure development drive.
“The project’s total cost is $263.80 million,” Ukoha stated.
He explained that $100 million would be sourced from the African Development Bank (AfDB), $15 million from the Canada–Africa Development Bank, and $23.80 million in counterpart funding from the state government.
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Ukoha described the IsDB facility as particularly significant “because its financing agreement must be signed for the project to proceed, given the integrated nature of the co-financing structure.
“The AfDB and Canada–Africa Development Bank financing agreements have already been concluded, with the AfDB loan agreement signed earlier this year.
“Under the project, the IsDB financing will support the construction of approximately 126 kilometres of road network in Aba and 35.57 kilometres in Umuahia,” he said.
He noted that the road projects would include a link road between the two cities, as well as critical erosion control works within the project sites.
According to him, once completed, the projects will reduce travel time in Abia’s busiest urban corridors and create over 3,000 jobs for local residents.
He added that the project will also reduce greenhouse gas emissions, improve access to social services, and attract private sector investments.
Ukoha further stated that the project, owned by the Abia State Government, will be executed through the State Ministry of Works, under the supervision of the State Steering Committee, which will provide policy direction for the State Project Implementation Unit and all stakeholders.
He explained that the IsDB-financed components, covering civil works and consultancy services, will follow the bank’s procurement guidelines, with disbursements made directly to contractors and consultants.
“This milestone follows sustained engagement and intergovernmental coordination.
“This approval is also a direct complement to the visionary infrastructural development agenda of the administration,” he added.
Ukoha noted that since assuming office, Governor Otti had made the modernisation of Abia’s road network, the revitalisation of urban centres, and the integration of sustainable development principles a cornerstone of his administration.
“The IsDB facility will strengthen these ongoing efforts, accelerating the pace of road reconstruction in Aba and Umuahia.
“It will also address critical erosion challenges and lay the groundwork for an integrated transportation network that supports commerce, improves quality of life, and enhances Abia’s competitiveness,” he said.
Ukoha quoted Otti as expressing appreciation to President Bola Tinubu for his trust and pragmatic leadership, and to the National Assembly for approving the borrowing plan.
He added that the governor also thanked the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, for his leadership in concluding the financing process.
The statement further quoted the governor as thanking the Secretary to the Government of the Federation, the Attorney General of the Federation, the Vice President of IsDB, Dr Mansur Muhktar, and all other stakeholders who contributed to securing the facility.
