The China Development Bank, on Tuesday announced the approval of a $254.76m (€245m) loan to support the Kano-Kaduna railway project in Nigeria.
This, according to information released on its website on Tuesday, is expected to ensure the seamless continuation of the construction work.
“China Development Bank released on Tuesday that the bank has recently granted a loan of 245m euros ($254.76m) to the Kano-Kaduna railway project in Nigeria, providing financial support for the smooth progress of the project,” the statement read on its website.
The CDB stated further that construction is progressing well and reiterated its commitment to working closely with the Nigerian government to ensure the disbursement of funds and effective management of the next phases of the project.
“Going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management,”the CDB noted.
The railway project, a standard-gauge line stretching 203 kilometres, will link Kano, a key commercial city in northern Nigeria, to the nation’s capital, Abuja.
Once operational, it will provide residents with a safer and more efficient mode of transport, improving regional connectivity.
In addition to easing transportation, the project is expected to spur economic growth by fostering the development of industries along its corridor.
It is also set to create numerous employment opportunities during its construction and subsequent operations.
The Kano-Kaduna railway has been listed as a practical cooperation project under the Third Belt and Road Forum for International Cooperation.
The project is being executed by the China Civil Engineering Construction Corporation (CCECC) and financed by the CDB.
The China Exim Bank, who was to be the funder of this project, backed off, with Nigeria announcing the CDB as the new financier.
