Nigeria: African Development Bank approves $124.2m loan for water sector reforms in Akure to improve access to safe drinking water and sanitation
- January 20, 2020
- Category: Water Treatment, Investment and Finance, Environmental, Africa
A loan for $ 124.2million was approved in December 2019 by the Board of Directors of the African Development Bank (AfDB) in order to finance the Urban Water Sector Reform and Akure Water Supply and Sanitation Project in Nigeria which also includes a loan from African Growing Together Fund (AGTF) for an amount of $20 million.
The project will span over five years from 2020-2025 with the total cost of $222.69 million. The funds from this project will reinforce the ability of the Federal Government to expedite urban Water Supply and Sanitation reforms.
The aim of the project is to improve access to safe drinking water and sanitation for homes in Akure city, Ondo State and the surrounding areas where there are holdups in supplying services due to the area being so densely populated (1.3 million). The loan will also help to install sanitation infrastructure for schools, hospitals and markets.
Ebrima Faal, Senior Director at theAfDB’s Nigeria Regional Office said:
“The project will particularly contribute to improving the living conditions of the communities in the project area. Involving these communities in the public awareness and marketing activities will increase the project’s ownership and ensure they pay for the water supply and sanitation services.”
The AfDB has an active portfolio in Nigeria involving 61 operations – 54 of these are national and 7 regional. A total amount of $4.8billion has been awarded for these projects including projects for water and sanitation with funds totaling $606million.
The project, which combines “hard” water, sanitation and environmental protection infrastructure with “soft” analytical and institutional reform support, aligns with the Bank’s Ten-Year Strategy (TYS) and its High 5s* priority areas, the Integrated Water Resources Management (IWRM) Policy.
The residents of Akure City and environs will benefit on completion of the project and at the Federal level, the Urban Water Reform part of the project will inaugurate a water and sanitation investment program that would contribute to scaling up of the National WASH Action plan 2018-2030.
*The High 5s are to: Light up and Power Africa; Feed Africa; Industrialize Africa; Integrate Africa; and Improve the Quality of Life for the People of Africa.