China Development Bank Approves €245 Million Loan for Nigeria’s Kano-Kaduna Railway Project
The China Development Bank (CDB) has recently announced the approval of a substantial loan amounting to €245 million (approximately $254.76 million) to finance the ongoing Kano-Kaduna railway project in Nigeria. This funding is expected to facilitate the uninterrupted progress of construction work on the railway.
According to a statement from the CDB’s website, the financial backing will aid in the seamless advancement of the project, which encompasses a standard-gauge rail line stretching 203 kilometers and connecting Kano, a pivotal commercial hub in northern Nigeria, to the capital, Abuja. Once finished, this railway is anticipated to provide residents with a safer, more efficient means of transportation, enhancing regional connectivity.
Moreover, the project is likely to stimulate economic growth by encouraging industrial development along the railway corridor and creating numerous job opportunities during both the construction phase and ongoing operations.
The Kano-Kaduna railway has been recognized as a vital cooperation project under the framework of the Third Belt and Road Forum for International Cooperation. The project is being carried out by the China Civil Engineering Construction Corporation, with funding sourced from the CDB.
In its announcement, the CDB confirmed that construction is progressing positively and highlighted its dedication to collaborating closely with the Nigerian government to ensure timely disbursement of funds and effective management of subsequent phases of the project. Notably, the China Exim Bank, initially slated to finance this project, withdrew, paving the way for the CDB to step in as the new principal funder.
The CDB further emphasized its commitment to facilitating the smooth allocation of subsequent loans and ensuring effective post-loan management in coordination with Nigerian partners.
During a recent address, President Bola Tinubu assured that the Ibadan-Abuja-Kaduna-Kano railway project would be completed to satisfaction. The Nigerian Federal Government has earmarked approximately N44.4 billion in its budget for 2023 to support the completion of this railway project, alongside others such as the Abuja-Kaduna and Lagos-Ibadan railways.
In related news, 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 his trip, Yi is expected to engage in discussions aimed at strengthening the bilateral relations between Nigeria and China.
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