FG okays $3.5bn loan for Ibadan-Kano, Oshogbo -Ekiti rail project

…$247m loan for rural electrification, Lagos urban renewal

…N474.4m to purchase 22 vehicles for NCAA

Mathew Dadiya, Abuja

The Federal Government has approved an additional $3.50 billion loan for the Federal Ministry of Transport to execute the ongoing rail project in the country.

The approval was given on Wednesday during the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari at the Council Chamber of the Presidential Viall, Abuja.

Briefing State House correspondents after the meeting, the Minister of Transportation, Mr Rotimi Amaechi, said that he presented two memos and both of them were approved by the council,

He said that the first one was an amendment to an earlier approval for an $8.7 billion rail project for Ibadan to Kano to Oshogbo, linking Minna to Abuja, Minna to Kaduna, and Kaduna to Kano.

The minister said that what the ministry sought for was the variation because the financing authority wanted to fund just $5.7 billion, adding that “We needed approval to negotiate the remainder as a commercial loan.

Amaechi said that the FEC has therefore given the approval to secure the remaining $3 billion and $500 million for the construction of rail from Oshogbo to Ekiti which was not in the earlier plan.

He further disclosed that the Council has also approved N474.4 million for the purchase of 22 number operational vehicles for the Nigeria Civil Aviation Authority.

“There will be two Hiace vehicle and 21 others,” he said.

Also, Minister of Finance, Mrs. Zainab Ahmed, said that the Federal Executive Council has approved three memos for Ministry of Finance.

Mrs. Ahmed said that the council first, approved $150 million loan facility from African Development Bank (AfDB) and $50 million loan from African Grow Together Fund to finance the Nigeria rural electrification project.

According to her, the project is a nationwide initiative to be implemented by the rural electrification agency.

“The project aligns with the strategy of Federal Government on electrifying rural community.

“The project has four components, first is solar hybrid mini-grid for rural economic development, the second is productive appliances equipment for up-grid communities and the third is energising education while the fourth component is institutional capacity building.

“The impact of the project when fully implemented, about 500,000 people will be able to have access to electricity for about 105,000 households. The maximum power that will be generated will be 76.5 megawatts installed generating capacity part of which is 68,000 megawatts of solar,” the minister explained.

Mrs. Ahmed added that eight universities in the country will benefit from the scheme and about 20,000 Small, Micro, Medium Enterprises (SMEs) across different communities in the nation.

She said: “The second approval the north Core dorsal regional transmission project. This is a project that is part of the pipeline for the pipeline for the West Africa power pull priority projects.

The intention is for the creation of regional power pull in the region of West Africa.

The post project aims to connect Nigeria, Niger, Benin Republic, Togo, and Burkina Faso with a high voltage 330 kilowatts transmission line, to facilitate energy trade amongst participants.”

She explained that the project will cost a total sum of $640 million out of which each of the four countries involved has a component.

The Finance minister further explained that Nigeria has the smallest component in this pact, “which is a total loan of $27.3 million IADE facility, it is a concessionary loan.”

The minister explained further that the it is a loan that the four countries were taking together, saying: “The other three countries have concluded theirs, so this is one of the final stages for Nigeria to conclude its process.”

“The third load approval is $20 million, for the Lagos State Strategic Transport Master Plan, this facility is from the French Development Agency.

The objective of the project is to improve the living conditions of the inhabitants of Lagos urban area and to promote urban development sitting by efficient and effective transport system.

“The project has two major components, first is to rehabilitate urban roads and the creation of minimum of eight equality bus corridors and the creation of two multi-model inter-changes at Marina and Mile 2.

The second objective is to provide technical support for implementation and management,” Mrs Ahmed added.

When completed, the minister said the project is expected to impact 1.8 million inhabitants of Lagos State and accumulative 1.5 million users per day for inter-model inter-changes without about 620,000 boarding at Mile 2 and 480,000 boarding at Marina. Another estimated 630,000 boarding at QBS.

She said that the project was being undertaken by Lagos State agency, LAMATA under its own strategy.

The Federal Government, she said, was borrowing to lend to Lagos “following the same terms and conditions that we signed. Our assessment is that Lagos State has the capacity to repay the loan,” she added.

Also, the Senior Special Assistant to the President on Media and Publicity, Garba Shehu said that FEC approved the bill for the establishment of a Nigeria Army University in Biu, Borno State.

“You will recall the council in April 2018 approved the establishment of the university, the bill will be forwarded to the National Assembly for legislation,” Shehu said.

On his part, Minister of Federal Capital Territory (FCT), Mohammed Bello, also said that FEC gave the approval for the rehabilitation of 12.6 kilometer of road from the junction Gwagwalada in the abuja Lokoja A1 express way.

The road, he said, would pass through Gwagwalada specialist hospital up to Bello village at the cost of N1.3 billion, with a completion period of eight months.

He said: “Council also approved the award of contract for the provision of cultural zone at the cost of N1.3 billion with a completion period of nine months.

“Council also approved the award of contract for the reconstruction of access road leading the lower Usuma dam, which provides portable water to the residents of Abuja and environs.

“This is line with this administration’s stance of twin contract development of the city and satellite towns to make it easier for residence to stay in either satellite towns or city. The contract sum is N1.26 billion with a completion period of six months.”