Chinese firm signs $1.5bn Lagos-Ibadan railway project

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Chinese firm signs $1.5bn Lagos-Ibadan railway project

Written by Christian Okeke, Abuja Wednesday, 29 August 2012

THE Federal Government and a Chinese firm, Messrs CCECC Nigeria Limited, on Tuesday, signed a contract agreement of the Lagos-Ibadan double track railway modernisation phase 1 project, valued at over $1. 5 billion.

The Federal Executive Council (FEC) had, on July 18, approved the project covering a distance of 156.65 kilometre and totaling 313.30 kilometre double track in favour of the Chinese firm.

Under the arrangement, the project was to be partly financed by the Chinese government, through China EXIM Bank concessionary loan worth $1 billion.

Negotiation was subsequently concluded with the bank in China for an initial $500 million, with the balance of $500 million expected in due course.

Also, the Federal Government is expected to pay the balance of the project fund in the sum of $530,779,101.

Minister of Transport, Senator Idris Umar, signed on behalf of the Federal Government, while Mr Cao Gang signed on behalf of CCECC.

Speaking at the ceremony in Abuja, the minister noted that the event typified consistency, continuity and the commitment of government’s policy to the moderni-sation of railway system in the country.

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another white-elephant
written by vikky, August 29, 2012

i pray it won't be another white elephant project.like it was proposed in the 90s and later aboundoned ,after all materials needed were placed along the rail line.some traces of the aboundoned planks still littered around ikeja rail station while some catered away by hoodlomes.

WHY CHINESE COMPANY AGAIN!!!
written by Bayo kayode, August 29, 2012

Dear Fellow Nigerians,can't we all see the highest level of corruption and lack of sense of good judgement? How can one describe the Abuja Rail Extension to the same Chinese Company when it has not been proved that the company can deliver. During the OBJ' govt.the same Chinese was awarded the Rail Double or standard gauge of which nothing substantial could be seen. I strongly believed that certain persons are benefiting seriously from all these contracts to the Chinese firms. Please note that the Chinese competency is not under discussion here but deliverable is what I concerns myself with. Julius Berger has contracts all over Nigeria and one can see the company performance . Same cannot be said of most Chinese companies.

...
written by OSCAR WISE, August 29, 2012

$1.5BIILION IS OUTRAGEOS!
HOW MUSCH WILL SIMILAR LENGHT OF RAILWAY COST IN CHINA, USA?

Lagos - Ibadan Railway Project
written by Olusegun Owolabi, August 29, 2012

This is a well spent project money which can yield a higher rate of return on investment. There are 2 commercially viable routes to Ibadan from Lagos. I believe the route being mentioned is the Lagos-Abeokuta- Ibadan route so as to have a seamless continuation to Oshogbo-Ilorin-Minna-Kaduna axis.
My suggestion is for government to just make NRC to manage tracks and signals and privatize couch transportation on the routes. A smaller efficient NRC will be more productive to handle the demand of many track users. 10 companies can use the track productively as being done in UK and USA. I congratulate the FGN

Railroad building contract to a Chineses firm?
written by Udo Obot, August 30, 2012

Dear Federal Government,
I am suggesting that Nigerian government think twice about awarding road-building contract to any Chinese firm. These are the same or similar firms that build the many bridges in China that are collapsing. See the following website for pictures of the result of their shoddy job.
http://images.search.yahoo.com/search/images?_adv_prop=image&fr=yfp-t-701&va=collapsed+bridges+in+China

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