During the agreement signing ceremony in Abuja, the Minister of Transport, Senator Idris Umar, said the agreement demonstrated consistency, continuity and commitment of government’s policy to the modernisation of the railway system.
The News Agency of Nigeria recalls that on July 18, the Federal Executive Council approved Addendum No.2: Lagos to Ibadan Standard Gauge Rail Double Track on double formation covering a distance of 156.65km totaling 313.30km double track.
Umar said the contract was approved in favour of CCECC in the sum of 1.49 billion dollars inclusive all tax with a completion period of 36 months.
He said the project, like the Abuja (Idu) to Kaduna project awarded in January 2009, was to be partly financed by the Chinese Government through a China EXIM Bank concessionary loan facility.
“Under the arrangement, the loan facility to the tune of one billion dollars is going to be provided by the China EXIM Bank,’’ he said.
He said negotiations had been concluded with China EXIM Bank for an initial 500 million dollars during the negotiation in China.
The minister said the balance of 500 million dollars was expected in due course while the Federal Government was expected to pay the balance of the project fund, which is 530.78 million dollars.
The Managing Director of CCECC, Mr. Cao Gang, gave an assurance that the company would keep pace with the terms and conditions of the contract.