The Federal Government of Nigeria on Friday signed a contract with the China Civil Engineering Construction Corporation (CCECC) for the construction of the much-talked about Lagos-Calabar rail project.
Representatives of both parties who were present at the formal ceremony included the Minister of Transportation, Rt. Hon. Chibuike Amaechi, and the president of the CCECC, Mr Cao Baobang. The signing marks the finalisation of the renegotiation process for the rail project: the contract was initially signed by the previous administration under former president Goodluck Jonathan, but was renegotiated by the succeeding Buhari-led government.
The minister said that the contract had to be signed for a deal which had been reached for the same project and with the same company because the sums involved had changed; the outcome of the renegotiation was that the contract valuation of $11.917 billion as agreed by the previous administration with the CCECC for the rail project had been revised downward to about $11.117 billion. This, according to the minister, saves the country about $800 million.
Mr Amaechi revealed that the Chinese construction company was expected to conclude arrangements with China Exim bank to facilitate the commencement of work on the project. He expressed hope that work on the Lagos-Calabar rail project would be completed in two years.
Towns and cities which the rail track is planned to pass through include Calabar, Uyo, Aba, Port Harcourt, Yenegoa, Otuoke,Ughelli, Warri, Sapele, Benin,Ore, Ijebu-Ode and Lagos.
