The state lenders from China have approved Kano-Kaduna Railway Funding by issuing a loan for the development of a crucial segment of the new cross-country railway project in Nigeria. This was reached at in a deal to indicate China’s increasingly pragmatic approach to development funding in the African continent.
Kano-Kaduna Railway Funding Financier
The China Development Bank which is a major policy bank made an announcement on Tuesday that it would issue an initial US$253.7 million tranche of funding for the Kaduna-Kano rail project. This rail section is part of a larger rail corridor which connects Nigeria from north to south.
Also read: Construction of $350m Cross River Railway Project Commences in Nigeria
Project Factsheet
- Length: 203 kilometers.
- Funding: The project recently secured a $255 million loan from the China Development Bank.
- Developer: China Civil Engineering Construction Corporation (CCECC).
- Significance: The railway aims will provide direct rail connectivity between Kano and Kaduna by offering a safer, faster, and more efficient mode of transportation compared to using roads.
- Economic Impact: It will cut transportation costs, enhance access to the market places, and also improve general regional security.
- Safety: It will provide safer travel in areas that are prone to kidnappings and attacks
This deal was announced at the event of the visit of the Chinese foreign minister Wang Yi to four African countries in this week. These visits have seen China make renewed pledges so as to boost its investments in the African region.
Also read: Nigeria-Niger (Kano-Maradi) Railway Line Construction Project Updates
Length and Cost of the Kano-Kaduna Railway
The Kaduna-Kano railway is a 203-kilometer line which links the northern state of Nigeria (Kaduna) with its second largest city-Kano. Moreover, this railway line project has an approximated cost of US$1.2 billion. China will be offering 85% funding of the project and the remaining will be catered for by the Nigerian government.
Lastly, as revealed by a local source with deep insight of the project l, this railway project is expected to link two Chinese-backed rail projects in Nigeria. One of the railways links the capital city (Abuja) with Kaduna. The other one running between the largest city in the country (Lagos) and also its third largest city (Ibadan).
