The House of Representatives has approved China Development Bank, as the new financier for the $973.4 billion project financing loan under the Federal Government External Borrowing (Rolling) Plan.
Chairman, House Committee on Rules and Business, Abubakar Hassan Fulata presented a motion on the recession of the 2016–2018 Federal Government External Borrowing (Rolling) Plan saying that, the decision followed the withdrawal by China Exim Bank from financing the project.
The National Assembly approved the sum of $22,798,446,773 (twenty–two billion, seven hundred and ninety–eight million, four hundred and forty–six thousand, seven hundred and seventy–three United States Dollars) only under the 2016–2018 Medium Term External Borrowing (Rolling) plan.
He said: “The Communications from the Federal Ministry of Finance requesting approval of modifications to the financing proposal for the Nigerian Railway Modernization Project (Kaduna–Kano segment) occasioned by the COVID–19 Pandemic whereof China Exim Bank withdrew its support to finance the project.
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“To secure funds for the project, the Contractor (CCECC Nigeria Limited) in collaboration with the Federal Ministry of Transportation engaged China Development Bank (CDB) as the new financier in the sum of $973,474,971.38 (nine hundred and seventy-three billion, four hundred and seventy-four million, nine hundred and seventy-one thousand and thirty-eight United States Dollars) only”.
The projects being to be financed by the new financier, China Development Bank through the commercial loan include among others, the Kaduna–Zaria–Kano road project
The loan has a maturity period of 15 years with an interest rate of 2.5% with a six months moratorium. It has a Commitment Fee of 0.4% and an Upfront Fee of 0.5%.
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