Jubilation As Buhari, Amaechi Set To Transform Nigeria To Mini-Dubai, Sign Multi-Billion Naira Deal.

President Muhammadu Buhari, through the Minister of Transportation, Rotimi Amaechi, has signed a contract, for the construction of a world class infrastructural dual rail gauge for Nigeria, to the tune of N458 billion.

                        
According to news reports, the Federal Government has already made its counterpart funds available, while China has promised to release its own by the end of this month.

The development is coming barely six month, after the Federal Government and the CCECC, had signed an earlier agreement for the project.

The Managing Director, MD, Nigerian Railway Corporation, NRC, Fidet Okheria, while applauding President Buhari for the approval, noted that the new Lagos-Ibadan rail, spanning 156.65 kilometres, a double gauge line, would be the first phase when compared to the Lagos-Kano standard gauge line.

He added, that the new line when completed in 18 months, would coexist with the old narrow gauge rail line.

Meanwhile, a NRC helmsman, who spoke to newsmen in Lagos, on Friday, shortly after receiving a leadership award from the Economic Community of West African States, ECOWAS Youth Council, said: “The Chinese government promises by the end of the month, to release its counterpart funds. And the project should therefore, start in the next one month.”

Recall, that the contract for the 2,733 km new Lagos-Kano rail, was first awarded by former President, Olusegun Obasanjo, in 2006, at a cost of $8.3 billion to the Chinese company, CCECC, but could not be executed due to paucity of funds.

It was then re-awarded to the same Contractor by the Goodluck Jonathan administration, in 2012, for execution in six phases, starting with the Lagos-Ibadan stretch.

Other projects to be finalised in coming weeks, are the construction of the Lagos-Calabar, and Kaduna-Kano railway lines.

As at last year, the Federal Government and the CCECC, had signed the contract for the construction of the Lagos-Ibadan and Calabar-Port Harcourt rail lines, after the two parties agreed to cut down the total cost for the projects from $11.917 billion to $11.117 billion.

Based on Amaechi’s submission, the cost reduction for the projects, was achieved after the contract was renegotiated by both parties. “The contract was awarded by the regime of former President Goodluck Jonathan, for $11.917 billion. When we took over at the Ministry, we renegotiated with the CCECC, and we succeeded in reducing the contract sum from $11.917 billion to $11.117 billion, and we are able to save $800 million after the renegotiation,” Amaechi had explained.

The Minister,further stated that the projects will be completed in two years, adding that, the railways would be connected to the seaports. CCECC would, “commence the construction of the first segment with Calabar-Uyo and Aba-Port Harcourt, and this will include all the seaports on this route.

“But the entire contract covers Calabar, Uyo, Port Harcourt, Yenogoa, Otuoke, Ughelli, Warri, Benin, Agbor, Asaba, Onitsha, and back to Benin, Ore, Sagamu and Lagos,” Amaechi said.