Presidency lists 15 major projects to be financed with $ 4 billion loan


Mallam Garba Shehu

* Includes the Kano-Katsina-Daura-Maradi railway line, 17MW of solar energy for N’Assembly
* 29 beneficiary states of the agro-climatic project
* Easy to source from multilateral institutions such as the World Bank, IFAD, AFD, three others

Deji Elumoye in Abuja

The presidency on Saturday listed 15 projects spread across the six geopolitical zones of the country as those to be financed with more than $ 4 billion from multilateral institutions, as part of the medium-term (rolling) external borrowing plan 2018- 2021.

Presidential spokesman Garba Shehu said in a statement on Saturday that President Muhammadu Buhari had asked the Senate to approve sovereign loans of $ 4.054 billion and € 710 million as well as subsidy items of $ 125 million. million dollars for the proposed projects.

According to the letter sent to the President of the Senate, Dr Ahmad Lawan by the President, sovereign loans will come from the World Bank, the French Development Agency (AFD), the China-Exim Bank, the International Fund for Agricultural Development ( FIDA), Credit Suisse Group and Standard Chartered / China Export and Credit (SINOSURE).

The President’s request to the Senate listed 15 proposed pipeline projects, objectives, period of implementation, benefiting states, as well as implementing ministries, departments and agencies (MDAs).
A breakdown of the “ Addendum to Proposed Pipeline Projects for the 2018-2021 Medium-Term (Rolling) External Borrowing Plan ” showed that the World Bank is expected to finance seven projects, including the $ 125 million grant. dollars for “Better education services for all”.

The Global Partnership for Education grant is expected to increase equitable access for out-of-school children and improve literacy in target states.
The grant, which will be implemented by the Federal Ministry of Education and the Commission for Universal Basic Education (UBEC), will strengthen accountability for results in basic education in Katsina, Oyo and Adamawa states. .

Other projects that will be financed by the World Bank are the State Program on Public Finances, Transparency, Accountability and Sustainability for Results as well as the Agro-Industry Support Project, productivity, improvement and improvement of livelihoods.
The beneficiary states of the agro-food project are Kogi, Kaduna, Kano, Cross River, Enugu and Lagos, with the Federal Ministry of Agriculture and Rural Development being the executing ministry.

The objective of the project is to improve the agricultural productivity of small and medium-sized farmers and improve added value along priority value chains in the participating states.
Likewise, the World Bank is also funding the Nigeria Sustainable Water Supply, Sanitation and Hygiene (WASH) project in Delta, Ekiti, Gombe, Kaduna, Katsina, Imo and Plateau states, for the next five years.

The project, when completed, is expected to improve rural water supply, sanitation and hygiene nationwide with a view to achieving the Sustainable Development Goals (SDGs) for water supply and sanitation by 2030.
Under the External Borrowing Plan, World Bank-supported projects also include Nigeria’s COVID-19 Preparedness and Response Project (COPREP), under the supervision of the Federal Ministry of Health and the Nigerian Center for disease control (NCDC).

The project, which has an implementation period of 5 years, will respond to threats posed by COVID-19 through the purchase of vaccines.
In addition, no less than 29 states are listed as beneficiaries of the Agro-climatic Resilience in the Arid Zone Landscape project, which is expected to reduce natural resource management conflicts in Nigeria’s dry and semi-arid ecosystems.

The beneficiary states of the project co-financed by the World Bank and the European Investment Bank (EIB) are: Akwa Ibom, Borno, Oyo, Sokoto, Kano, Katsina, Edo, Plateau, Abia, Nasarawa, Delta, Niger, Gombe, Imo , Enugu, Kogi, Anambra, Niger, Ebonyi, Cross River, Ondo, Kaduna, Kebbi, Jigawa, Bauchi, Ekiti, Ogun, Benue, Yobe and Kwara.
The World Bank is also funding the Livestock Productivity and Resilience project in no less than 19 states and the Federal Capital Territory (FCT).

China EXIM Bank is expected to finance the construction of the Apapa-TinCan Island Port Branch, as part of the Lagos-Ibadan Railway Modernization Project.
The French Development Agency will finance two projects, including the national digital identity management project and the Kaduna rapid bus transport project.

The digital identity project will be co-financed with the World Bank and the EIB.
The value chain development program to be financed by IFAD and implemented in Anambra, Benue, Ebonyi, Niger, Ogun, Taraba, Nasarawa, Enugu and de Kogi will empower 100,000 farmers, including over 6,000 and 3,000 processors and traders respectively.

The loan facility to be provided by the European ECA / KfW / IPEX / APC will be devoted to the construction of the Standard Track Rail (SGR) connecting Nigeria to the Republic of Niger of Kano-Katsina-Daura-Jibiya-Maradi with a branch to Dutse.
The specific title of the project, Kano-Maradi SGR with a branch in Dutse, has an implementation period of 30 months and will be implemented by the Federal Ministry of Transport.

The China Development Fund for Africa through the Bank of China is expected to provide a loan facility of $ 325 million for the establishment of three energy and renewable energy projects, including the Phase 1 and II solar cell production facility, production of electrical transformers, plants 1, II, III and high voltage testing laboratory.

The National Agency for Scientific and Technical Infrastructure (NASENI) will implement the project aimed at increasing local capacities and capacities in the development of energy and renewable technologies and infrastructure.

Credit Suisse will finance major industrialization projects as well as micro, small and medium enterprise projects to be executed by the Bank of Industry while SINOSURE and Standard Chartered Bank will provide funds for the provision of solar energy infrastructure. 17 MW hybrid for the National Assembly (NASS) complex.

The project, with an implementation period of five years, is expected to address the ‘power supply deficit of NASS and reduce the higher overhead costs associated with the operation and maintenance of fossil fuel generators (installed capacity of 25 MW) to supply the assembly complex ”.

President Buhari had, in a letter of request dated August 24, 2021, sought Senate review and approval to take out external loans of $ 4.054 billion, £ 710 million and $ 125 million to finance projects under the 2018-2021 borrowing plan.
The president’s letter was read by Senate Speaker Dr Ahmad Lawan last Tuesday at the start of plenary after a two-month annual suspension from the National Assembly.

The president explained in the letter that the projects listed in the federal government’s 2018-2021 borrowing plan are to be financed by sovereign loans from the World Bank, the French Development Agency (AFD), China- Exim Bank, of the International Fund for Agricultural Development (IFAD), Credit Suisse Group and Standard Chatered / China Export and Credit (SINOSURE) for a total amount of USD 4,054,476,863.00; 710,000,000.00 euros and grant component of 125,000,000.00 USD.

He explained that the amount would be used to fund federal and state government projects in key sectors such as infrastructure, health, agriculture and food security, energy, education and capital development. human rights and COVID-19 response efforts.

According to the president, the projects spread across the country’s six geopolitical zones would result in job creation and poverty reduction, as well as protection of the most vulnerable and poorest segments of Nigerian society.

The letter read in part: “I am writing regarding the above subject and I submit the attached Addendum to the Federal Government’s Proposed External Borrowing Plan for 2018-2021 for consideration and concurrent approval by the Senate for further consideration. ‘it comes into force.

“The President of the Senate may wish to recall that I sent earlier a request concerning the draft plan for the external borrowing of the federal government 2018-2020 for the simultaneous approval of the Senate in May 2021.
“However, in view of other emerging needs and to ensure that all critical projects approved by the FEC in June 2021 are incorporated, I hereby forward an addendum to the proposed borrowing plan.

“The projects listed in the addendum to the Federal Government’s External Borrowing Plan 2018-2021 must be financed by sovereign loans from the World Bank, the French Development Agency (AFD), the China-Exim Bank, the International Fund for Agricultural Development (IFAD), Credit Suisse Group and Standard Chatered / China Export and Credit (SINOSURE) for a total amount of USD 4,054,476,863.00; 710,000,000.00 euros and grant component of 125,000,000.00 USD.

“The Senate is invited to note that the projects and programs of the Borrowing Plan were selected on the basis of positive, technical and economic evaluations and the contribution they would make to the socio-economic development of the country, including the job creation and poverty reduction. as protection of the most vulnerable and poorest segments of Nigerian society.

“The Senate may also wish to note that all of the projects listed in the Addendum are part of the 2018-2021 External Borrowing Plan and cover both federal and state government projects and are geared towards achieving the plan. of Nigeria’s economic sustainability that cuts across key sectors such as infrastructure, health, agriculture and food security, energy, education and human capital development, and COVID-19 response efforts.

“In view of the importance attached to the on-time delivery of the projects listed in the proposed borrowing plan and the benefits that the federal and state governments stand to gain from its implementation, I hereby wish to request the kind consideration and simultaneous Senate approval for the projects listed in the Addendum to the Federal Government External Borrowing Plan 2018-2021 to allow the projects to become effective.

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