The Ibadan-Kaduna rail project was awarded for approval in 2006 but was only approved in 2018 with some additions to the entire project.
- China EXIM has agreed to finance the Ibadan-Kaduna rail project in Nigeria to the tune of $6.7billion.
- The Transportation minister confirmed this saying the rail project will last three years before completion.
The Nigerian government is ready to embark on a rail project from Southwest Ibadan to the Northern city of Kaduna at the cost of $6.7 billion and China EXIM will be financing it.
The Ibadan-Kaduna rail project was awarded for approval in 2006 but was only approved in 2018 with some additions to the entire project.
The newly approved rail project will also see the construction firm linking Oshogbo to Ado-Ekiti within the same stretch and totalling cost of execution to US $6.7billion.
The approval of the rail project was confirmed by the Minister of Transportation, Rotimi Amaechi, who presented the project memo to the Federal Executive Council.
“The Council approved the award of a new contract from Ibadan to Kaduna. Earlier, the council had awarded from Kaduna to Kano; now the entire Ibadan to Kano as a stretch has been awarded. What was awarded today was Ibadan to Kaduna at the cost of US $6.7bn. This is an old contract that was awarded in 2006,” said Minister Amaechi.
China EXIM has agreed to fund the Ibadan-Kaduna rail project in Nigeria following the approval of the FG.
While addressing correspondents after presentation and approval of the rail project, the Minister said that the rail project will be completed within the period of three years.
“The only difference now is that we had to award the spur that is going to Ado-Ekiti. There is a new contract from Oshogbo to Ado-Ekiti that has brought the entire contract to US $6.7bn from Ibadan to Kaduna and it was awarded to a Chinese company,’’ he added.
Following the approval of the rail project, China EXIM bank had also agreed to finance the Ibadan –Kano railway project.
The approval of the Ibadan-Kaduna rail project is coming couple of years after the completion of the Abuja-Kaduna rail project, which gulped $874million.
In the same vein, the Abuja-Kaduna rail project saw China‘s EXIM bank providing $500m as a concessionary loan for the project while the remainder was provided by Nigeria’s Federal Government.
In an interview with Amaechi published in Leadership Newspaper, the Minister said a total of $46billion will be required to complete all rail projects in Nigeria
The minister said, “the Federal Government is looking at between $40 to $46 billion dollars to complete all rail projects that would connect major state capitals across the country.”
Noting the importance of embarking on major rail projects, the Minister said “Could you imagine the benefits of moving massive goods from Port Harcourt to Jos or moving a cargo from Lagos to Kano? Now, you cannot quantity the benefits at all.”
Souce: http://www.pulse.ng/bi/finance/china-exim-to-finance-ibadan-kaduna-rail-in-nigeria-id8039103.html