CHINESE BANK APPROVES $254.76M LOAN FOR KANO-KADUNA RAILWAY
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The China Development Bank has announced the approval of a $254.76m (€245m) loan to support the Kano-Kaduna railway project in Nigeria.
According to information released on its website on Tuesday, the financial backing is expected to ensure the seamless continuation of the construction work.
It said on its website, “China Development Bank released on Tuesday that the bank has recently granted a loan of 245m euros ($254.76m) to the Kano-Kaduna railway project in Nigeria, providing financial support for the smooth progress of the project.”
The railway, a standard-gauge line stretching 203 kilometres, will link Kano, a key commercial city in northern Nigeria, to the nation’s capital, Abuja.
Once operational, it will provide residents with a safer and more efficient mode of transport, improving regional connectivity.
In addition to easing transportation, the project is expected to spur economic growth by fostering the development of industries along its corridor.
It is also set to create numerous employment opportunities during its construction and subsequent operations.
The Kano-Kaduna railway has been listed as a practical cooperation project under the Third Belt and Road Forum for International Cooperation.
The project is being executed by the China Civil Engineering Construction Corporation and financed by the CDB.
According to the bank, construction is progressing well. The CDB reiterated its commitment to working closely with the Nigerian government to ensure the disbursement of funds and effective management of the next phases of the project.
The China Exim Bank, who was to be the funder of this project, backed off, with Nigeria announcing the CDB as the new financier.
The CDB noted, “Going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.”
Last year, President Bola Tinubu assured that the Ibadan-Abuja-Kaduna-Kano railway project would be completed to satisfaction.
The Federal Government hopes that the ongoing construction of the Kaduna to Kano rail line will be completed before the end of this year.
About N44.4bn has been budgeted this year for the completion of the Abuja-Kaduna Railway project, Lagos-Ibadan railway, and other railway projects across the country.
The Foreign Minister of the People’s Republic of China, Wang Yi, is scheduled to arrive in Abuja on Wednesday for an official visit.
During the visit, Yi, who is a member of the Political Bureau of the Central Committee of the Communist Party of China, will engage in discussions aimed at strengthening ties between Nigeria and China.
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