Islamic Bank to co-fund front-end engineering design study of the Morocco-Nigeria Gas Pipeline Project

23 Dec Islamic Bank to co-fund front-end engineering design study of the Morocco-Nigeria Gas Pipeline Project

The Islamic Development Bank (IsDB) has agreed to fund the Front-End Engineering Design (FEED) Study for the Nigeria-Morocco Gas Pipeline project expected to enhance African integration, regional trade, and economic cooperation.

The funding agreement was signed remotely on Monday by IsDB Vice President Mansur Muhtar, Moroccan Economy & Finance minister Nadia Fettah, and Director General of the National Office of Hydrocarbons & Mines (ONHYM) Amina Benkhadra.

Morocco and Nigeria have agreed to share equally the cost of the project’s studies estimated at $90 million. The IsDB will support the Moroccan contribution and participate in the financing of the project with $15.4 million under “Service Ijara” operation.

For the Nigerian contribution, the IsDB Bank has agreed to contribute $29.7 million in the FEED study which aims at preparing the required studies for the gas pipeline and help taking the final investment decision by 2023 for the infrastructure project.

The IsDB funding will help to carry out the environment & social impact study in order to ensure the project compliance to all local and international environmental and social regulations and standards.

It will also finance land acquisition studies for agreeing with all countries to be crossed by the pipeline to ensure smooth implementation of the works at a later stage.

Morocco and Nigeria agreed to build the pipeline in late 2016 during a visit paid by King Mohammed VI to Abuja. Nigerian President Muhammadu Buhari also supports this landmark project.