The Islamic Development Bank (IDB) has approved the financing of a project to study the second phase of the preliminary technical design of the Morocco-Nigeria gas pipeline.
The budgetary envelope mobilized by the IDB amounts to $29.75 million, according to a statement from the Bank.
The project will enable West African states to replace costly oil-fired power generation with renewable electricity generation and gas-fired power generation, the IDB said in a statement.
The support is part of the $1.6 billion in financing approved by the Bank, which includes 24 new development projects in 19 member states in Africa, Asia and Europe, the statement on its official website added.
The IDB will support the Moroccan contribution and will participate in the financing of the project to the tune of $15.45 million under a so-called “Service Ijara.”
For the Nigerian contribution, the bank has approved a financing of $29.75 million, which will bring the IDB’s contribution to 50 percent of the total cost of the FEED study of the Nigeria-Morocco gas pipeline, the statement said.
In accordance with the agreement between the governments of Morocco and Nigeria, the two countries will share equally the cost of the study estimated at $ 90.1 million.
The study aims to prepare the feasibility studies required for the pipeline and to help make the final investment decision by 2023.
HA/fss/as/APA