The China Development Bank (CDB) has granted a $254.76m (€245m) loan in support of the 203-kilometre Kano-Kaduna railway project in Nigeria.
The CDB stated this on its website on Tuesday, adding that the facilities would facilitate backing and is expected to ensure the seamless continuation of the construction work.
The CDB acknowledged progress in the construction of the rail line, pledging that it would work closely with the Federal Government to ensure the disbursement of funds and effective management of the next phases of the project.
The CDB said it came in as a replacement of China Exim Bank who backed off from financing, adding that, “going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.”
When completed, the railway, which is a standard-gauge line will link Kano to Abuja as well as improve regional connectivity.
The project is projected to raise the economic growth of the region 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 and financed by the CDB
It would be recalled that President Bola Tinubu, last year promised that the Ibadan-Abuja-Kaduna-Kano railway project would be completed to satisfaction.
The Federal Government hopes that the ongoing construction of the Kaduna to Kano rail line will be completed before the end of this year.
About N44.4bn has been budgeted this year for the completion of the Abuja-Kaduna Railway project, Lagos-Ibadan railway, and other railway projects across the country.
