FEC Approves N13.4bn Loan For Water Project

The Federal Executive Council (FEC) has approved a concessional loan of 89 million dollars (N13.4 billion) for water supply expansion and sanitation projects in Zaria, Kaduna State.

Mr Labaran Maku, the Minister of Information, disclosed this after the council meeting presided over by President Goodluck Jonathan at the State House in Abuja last Wednesday.

Maku said that the loan sought from the African Development Bank (ADB) would be used to complete the water works to improve access to safe water supply to residents of the city and its environs.

“The project is meant to improve the current level of water supply from 30 per cent to 80 per cent by 2016, to improve sanitation in schools, health centres and other public places like markets and motor parks by 2016.

“It is also to improve service provision and commercial viability of Kaduna State Water Board through institutional and management reforms including tariff increase, capacity building and adoption of viable public-private partnership (PPP),’’ he said

The minister said that the project would go a long way to alleviate poverty and improve the health conditions of the people.

The loan according to the minister, would be lent to Kaduna State Government while the Ministry of Finance would facilitate its approval on behalf of the Federal Government.

He said that the Minister of Justice and Attorney-General of the Federation had been directed to issue legal opinion required to make the loan agreement effective.

The council also approved N2.2 billion contract for the rehabilitation of Ada-Okheleen-Ukoni-Amedokhian road in Edo.

A N2.8 billion contract was also awarded by FEC for the construction of Kporo-Abriba-Ohafia road in Abia.

Maku said that the roads were in deplorable conditions and the rehabilitation would enhance the socio-economic activities of both states.

He said that the project would also generate employment for Nigerians and facilitate community development and exchange of goods and services.