Abia State has announced that the long-awaited $125 million Islamic Development Bank (IsDB) financing facility for the Abia State Integrated Infrastructure Development Project has been approved by the federal government.
This approval marks a major milestone in a project that has undergone extensive consultations and procedural steps, and is a critical component of the overall co-financing arrangement for the state’s ambitious infrastructure development drive.
The project’s total cost is $263.80 million, comprising $125 million from the Islamic Development Bank (IsDB), $100 million from the African Development Bank (AfDB), $15 million from the Canada–Africa Development Bank and $23.80 million counterpart fund from the Abia State government.
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The IsDB facility is particularly significant because its financing agreement must be signed for the project to proceed, given the integrated nature of the co-financing structure.
The AfDB and Canada–Africa Development Bank financing agreements have already been concluded, with the AfDB loan agreement signed earlier this year.
Under the project, the IsDB financing will support the construction of approximately 126 kilometres of road network in Aba and 35.57 kilometres in Umuahia, including a link road between the two cities, as well as critical erosion control works within the project sites.
When completed, the project will reduce travel time in Abia’s busiest urban corridors, create over 3,000 jobs for residents, reduce greenhouse gas emissions, improve access to social services, and attract private sector investment.
Procurement for the IsDB-financed components, covering civil works and consultancy services, will follow the bank’s procurement guidelines, with disbursements made directly to contractors and consultants.
This milestone follows sustained engagement and inter-governmental coordination.
This is contained in a statement issued on Thursday by Governor Alex Otti’s Chief Press Secretary, Ukoha Njoku Ukoha and made available to journalists in Umuahia.
This approval is also a direct complement to the visionary infrastructural development agenda of the administration.
Since assuming office, the governor has made the modernisation of the state’s road network, the revitalisation of urban centres, and the integration of sustainable development principles a cornerstone of his administration.
Gov. Otti noted that the landmark project will complement his administration’s ongoing infrastructural development initiatives, aimed at modernising Abia’s transportation network, revitalising urban centres, and positioning the state as a hub for sustainable economic growth.
