FG signs $3.9bn deal with Chinese firm for Abuja-Itakpe railway construction

FG signs $3.9bn deal with Chinese firm for Abuja-Itakpe railway construction

The federal government on Thursday, October 10, signed a deal of $3.9 billion with China Railway Construction Corporation (CRCC) for the construction of the Abuja-Itakpe railway.

The Chinese firm, according to Rotimi Amaechi, the minister of transportation, will also handle the construction of a seaport in Warri, Delta state, Daily Trust reports.

Speaking in Abuja during the signing ceremony, Amaechi said that the Public-Private Partnership (PPP) agreement states that Nigeria will take care of 15% of the cost, while CRCC will handle 10% of it.

The minister also stated that the remaining 75% will be borrowed by the Special Purpose Vehicle (SPV) which the federal government will pay back in a period of 30 years after which it will take back ownership of the assets.

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He said: “We will give them a sovereign guarantee and they will give us a performance bond that protects our sovereign guarantee. When they finish construction, they will manage for 30 years.

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“The entire railway for now in Nigeria is constructed 100 by CRCC. I think that the good working relationship we have had with CRCC is the reason we have not been able to engage other companies.”

Meanwhile, Legit.ng reported that a report that some gunmen attacked an Abuja-Kaduna train had been dismissed by an official of the Nigerian Railway Corporation (NRC).

The NRC's official, Paschal Nnorli, on Tuesday, September 18, said that the viral news about the attack was untrue.

NAIJ.com (naija.ng) -> Legit.ng: Same great journalism, upgraded for better service!

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Source: Legit

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