Nigerian govt approves €64m loan for Kano water project

Nigerian govt approves €64m loan for Kano water project
March 13 18:31 2019

By Nasir Kura

The Federal Executive Council (FEC) has approved 64.75 million Euros to improve water supply in Kano state, Minister of Finance, Hajiya Zainab Ahmed, said Wednesday.

Briefing State House correspondents at the end of the weekly FEC meeting presided over by President Muhammadu Buhari at the Presidential Villa in Abuja, the minister said the project, to be executed by the Kano State Government, would improve the living conditions of the people of the state.

“Today at the FEC meeting, we got an approval for a facility in the sum of 64,750,000 million Euros for a National Urban Water sector reform project in Kano State. The project is to improve the living conditions of up to 1.5 million people in the greater urban area of Kano by improving access to quality water and also we are seeking to increase the financial viability of the Water Board by increasing its revenue and enhancing its governance framework.

“The project is to rehabilitate and build 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 its State Project Management Committee is to implement the project.

“The funding is a facility to the Federal Government of Nigeria; the Federal Government of Nigeria will be on lending to Kano State at the same terms and conditions,’’ she said.

The minister said the funding was from the French Development Agency with an interest rate of 1.02 per cent, a repayment period of 20 years and a seven-year moratorium period.

She there is also 0.25 per cent appraisal and 0.25 per cent commitment fees.