Just In: FG seeks fresh $500m World Bank loan for dam safety, others

In a bid to enhance water resource management and improve dam safety nationwide, the Federal Government has put forward a request for a $500m loan from the World Bank.

The loan is aimed at tackling water security challenges in the country and bolstering agricultural productivity under the Sustainable Power and Irrigation for Nigeria Project. Outlined in a Project Information Document by the World Bank, the SPIN project will zero in on important focus areas such as institutional strengthening, irrigation modernization, dam operations and safety enhancements, as well as project management.

The planned approval date for the SPIN project is set for September 26, 2024.
Efforts will be concentrated on fortifying federal and state bodies responsible for water resource management. This includes formulating national dam safety guidelines, providing training for water resources and irrigation management, and devising an exhaustive hydropower master plan.

According to the document, Nigeria is grappling with water security obstacles affecting water availability for various purposes like drinking, energy, and food production. These challenges are further exacerbated by climate change, posing thr3ats to livelihoods and economic progress. Improved water storage and dam safety are vital for climate change adaptation and mitigation in Nigeria, crucial for enhancing water management for irrigation, hydropower generation, and safeguarding against floods and droughts.

The nation currently harbors over 400 dams with an estimated combined storage capacity of 59 billion cubic meters. A significant portion of these dams, particularly large ones constructed in the 1970s and 80s, requires rehabilitation due to inadequate funding, human resources, and capacity for effective dam management, operation, and maintenance at both federal and state levels.

The document also highlighted the critical need for rehabilitating numerous dams within the country, emphasizing the urgency following the destructive 2022 floods that resulted in an estimated $6.7n in economic losses. As part of the project’s second phase, the Federal Government intends to revamp and modernize 40,000 hectares of irrigated land while empowering Water User Associations to efficiently manage irrigation schemes. The third phase will prioritize the rehabilitation and safety enhancement of key dams by conducting risk assessments, devising emergency action plans, and implementing structural safety upgrades.

The final phase aims to ensure effective project execution, monitoring, and evaluation, involving the establishment of a Federal Project Management Unit and Technical Units at both federal and state levels.