FG Requests Fresh $500m World Bank Loan For Dams
The federal government has made a fresh request for a $500m loan from the World Bank.
The loan would help to improve dam safety and enhance water resource management across Nigeria.
This was disclosed in a World Bank’s Project Information Document.
The project for which the loan was requested focuses on four critical areas
The areas include institutional strengthening and capacity building; irrigation modernisation; improvements in dam operations and safety; and project management.
The proposed approval date for the SPIN project is September 26, 2024, according to the World Bank.
According to the document, Nigeria has over 400 dams which are in dire need of rehabilitation.
The document reveals, “Nigeria faces water security challenges, which impact water availability for drinking water, energy and food production, and are increasingly exacerbated by climate change, putting livelihoods and economic development at risk.
” Harnessing water storage and dam safety is central to climate change adaptation and mitigation in Nigeria. It is a prerequisite to improving water management for water supply, irrigation, and hydropower generation and offers protection from floods and droughts.
“Nigeria has over 400 dams and an estimated total combined storage of 59 billion cubic meters. 46 per cent of dams are federally owned and are managed by the Federal Ministry of Water Resources and Sanitation, through River Basin Development Authorities. 48 per cent of dams are state-owned and are managed by a state ministry. Many dams are incomplete and more than 50 per cent of the large dams built in the 1970s and 80s require rehabilitation.
“This situation is due in part to institutions responsible for dam management, whether at the federal or state level, having inadequate budget, human resources and capacity to ensure dam management, operation and maintenance and non-adherence to operational manuals, where they exist.”
The document said that the devastating 2022 floods caused an estimated $6.7bn in economic damage.
The government said it has become urgent for it to improve dam safety and water management.
The loan will also be used to rehabilitate and modernise 40,000 hectares of irrigated land.
