Update: FG approves €64.7m loan for Kano water project

Mathew Dadiya, Abuja

The Federal Government has approved €64,750,000 million Euros loan facility for Greater Kano Water Project for Kano State.

The Minister of Finance, Mrs Zainab Ahmed disclosed this on Wednesday while briefing State House correspondents at the end of the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari.

Mrs Ahmed, said that the approved €64,750,000 loan is from French Development Agency for a national urban water sector reform project in Kano State.

According to the minister, the facility from the French Development Agency will provide portable water for 1.5 million people in the state.

She said that the facility is to be implemented by Kano State Water Board.

“The project is to improve the living conditions of up to about 1.5 million people in the greater area of Kano, including access to quality water and to improve the financial viability of the water board by increasing its revenue and enhancing its governance framework.

“The project is to rehabilitate and build the infrastructure needed to increase access to water services to populations in greater Kano and to help improve key sector reforms for the sustainability of the project,” the Minister said.

Ahmed said that Kano State ministry of water resources through a state project management committee would implement the project.

She added that the funding is a facility to the federal government of Nigeria that will in turn lend to Kano State at the same terms of conditions.

The conditions include: It is at interest rate of 1.02 percent with a repayment period of 20 years and a seven year moratorium period.

According to the minister, there is also a fee of 0.25 percent for appraisal and a commitment fee of 0.25 percent.