Nigeria: US$ 78 million Loan for Water and Sanitation Project in Nigeria

03/09/2009
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Tunis, 2 September 2008 – The African Development Bank (AfDB) Group Board of Directors has approved a loan of US$ 78 million, (50 million UA*), from the African Development Fund (ADF), to finance an Urban Water Supply and Sanitation Project (UWSSP) for Oyo and Taraba States.

The project has two broad objectives:

  • To improve access to safe water supply services in the cities of Ibadan (population 2.5million) and Jalingo (population estimated at 170,000), from the current levels of 25% in Ibadan and 30% in Jalingo to 80% by 2014, through rehabilitation and extension of the existing infrastructure, and to improve sanitation in public places like schools, health centers markets and motor parks;
  • To improve sector management, the overall performance and the long-term financial viability of urban water utilities in the two States through institutional and management reforms including tariff increases, capacity building, and adoption of viable public-private partnership (PPP) models.

The Project was identified by the government as one of its priorities, in view of the current low access to clean water and sanitation across the country which has affected the health and living conditions of the people, particularly the urban poor.

The project, which will be implemented over five years, is estimated at UA 58.82 million (US $ 92 million). The project will benefit about 1.5 million people/residents in the two urban centers of Ibadan and Jalingo with population 1.4 and 0.1 million, respectively.

On the whole, the project will improve public health and the standard of living in the cities and its surroundings, and increase the investment and operational conditions for industrial and commercial activities in the cities, thereby enhancing opportunities for employment.

The Bank has, since 1986, supported the Nigerian government in the development of the country’s water and sanitation sector through eight projects covering eleven states. The project will also complement the efforts of other donors in the sector.

The Bank Group’s intervention is also consistent with the funding priorities of ADF-11, which focuses on poverty reduction through growth driven by investment in infrastructure and governance.

* 1 UA (Unit of Account) = US $ 1.57 as at 2/09/2009