Nigeria’s cabinet approves 64.75m Euros for Kano State Water Project

Cyril Okonkwo, Abuja

0
215
PRESIDENT BUHARI PRESIDES OVER FEC MEETING 2. R-L; President Muhammadu Buhari, Vice President Yemi Osinbajo SAN, SGF, Mr. Boss Mustapha, Chief of Staff, Mallam Abba Kyari, Head of Civil Service of the Federal Mrs Winifred Oyo-Ita and NSA Maj General Babagana Monguno during the Federal Executive Council meeting held at the Council Chambers, State House, Abuja PHOTO; SUNDAY AGHAEZE. MARCH 13 2019.

The Federal Executive Council has approved 64, 750,000 Euros facility for a national urban water sector reform project in Kano State.

Minister of Finance, Zainab Ahmed, stated this while briefing State House correspondents after Wednesday’s cabinet meeting presided over by President Muhammadu Buhari.

“The project is to improve the living condition of up to about 1.5million in the greater area by improving access to quality water and we are also seeking to improve the financial viability and enhancing its governance framework.

“The project is also to rehabilitate and build infrastructure needed to increase access to water services to populations in greater Kano and to help improve key sector reforms to ensure the sustainability of the project.”

Ahmed said that the 64, 750,000 funding facility was from the French Development Agency to the Federal government of Nigeria.

She said that the federal government would be lending the facility to the Kano State government on the same terms and conditions that it was got from the French government.

According to her, terms and conditions of “the very low cost facility for a very long tenure” include “an interest rate of 1.02% with a repayment period of 20 years and seven-year moratorium period.”

She said there would also be a fee of 0.25% for appraisal and a commitment fee of 0.25%.

The minister said that the Kano State Ministry of Water Resources, through its state project management committee, would implement the project.

Today at the FEC meeting, we got an approval for a facility in the sum of 64, 750,000 Euros for a national urban water sector reform project in Kano State.  The project is to improve the living condition of up to about 1.5million in the greater area by improving access to quality water and also we are seeking to improve the financial viability and enhancing its governance framework.

The project is to rehabilitate and build infrastructure needed to increase access to water services to populations in greater Kano and to help improve key sector reforms to ensure the sustainability of the project.

The Kano State Ministry of Water Resources, through its state project management committee, is to implement the project.

The funding is a facility to the Federal government of Nigeria, but the FG will be on lending to the Kano State government on the same terms and conditions.

This facility of 64,750,000 is from the French Development Agency.  And the terms and conditions of the facility are:

  1. It is at an interest rate of 1.02% with a repayment period of 20 years and seven-year moratorium period.  There is also a fee of 0.25% for appraisal and a commitment fee of 0.25%.

This is a very low cost facility for a very long tenure with a seven-year moratorium that is meant to provide good quality drinking water for up to 1.5million people in the greater area of Kano.

Omolayo.A