FG & China sign $3.9bn contract to link FCT and Itakpe/Warri by Railway
The Federal Government has signed a contract agreement for the construction of railway to link Abuja, the Federal Capital Territory with Itakpe and Warri.
The rail line which is about $3.9bn will pass through Barrow and have a branch line to Lokoja, the Kogi State capital.
The Minister of Transportation, Chibuike Rotimi Amaechi, while signing the Contract on behalf of the Federal Government on Thursday in Abuja, said the contract will be operated on a Public Private Partnership (PPP) platform where the Federal Government and the Chinese company are expected to contribute equity to the cost of the construction.
According to Amaechi, “The signing ceremony we are witnessing today is the first PPP railway agreement for Abuja, Barrow, Itakpe and Lokoja. The agreement is between the Federal Republic of Nigeria and China Railway Construction Company International (CRCCI). In the agreement, it is 15 percent Nigeria and 10 percent CRCCI and then we would borrow the remaining seventy five percent as SPV from the Chinese EXIM bank.”
“Part of the agreement is that the CRCCI will provide us with a performance bond before we give a sovereign guarantee for them to be able to borrow the remaining seventy five percent,” Amaechi said.