FG Needs $656m To Complete Lagos-Ibadan Rail Line, Says Amaechi
Federal Government would need $656m to complete work on the Lagos-Ibadan railway project. Lagos-Ibadan rail line
The Minister of Transportation, Rotimi Amaechi, made this revelation on Friday.
The Minister stated this while defending his ministry’s 2021 budget before the National Assembly Joint Committee on Land and Marine Transport.
the amount was needed to put in place necessary infrastructure for the project to serve its intended purpose, according to the Ameachi.
He noted that the Ibadan-Kano railway project also required $645.3m as advance payment. This is to enable the Federal Government to complete its loan signing agreement with the China Exim Bank.
Amaechi said, “I am happy to report that the construction of the Lagos-Ibadan Standard Gauge line. The project has reached 92 per cent project completion.
“However, for the project to achieve full loan drawdown from our co-financier, China EXIM Bank, and attain practical completion for it to be used for the intended purpose. Some aspects of works involving construction of upgraded railway stations, signalling and telecommunication system, power supply scheme and construction of pedestrian and overpass bridges have to be completed. Lagos-Ibadan rail line
“This additional and extra works amounting to $656m. The Federal Government of Nigeria will finance it 100 per cent. Federal Executive Council has approved it for implementation.
“Similarly, for the implementation of the Ibadan-Kano railway. This is the outstanding segment of the Lagos-Kano railway project. One of the conditions precedent to signing of the loan agreement is the release of advance payment. In this case, it is in the sum of $864m. Out of this government has released the sum of $218.7m as part payment, leaving a balance of $644.3m.”
He said the ministry planned to complete the fencing of the Abuja-Kaduna railway line for security purposes.