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FG Awards $1.5 billion Lagos Ibadan Rail Contract to Chinese Company

By on July 19, 2012

The Federal Government through its Federal Executive Council has awarded a contract worth $1.48 billion to China Civil Engineering Construction Company (Nig) Limited.

The contract is for the construction of a standard gauge rail to link the two cities that are commercial nerve centers of the South-West.
The construction of the rail line will also serve as an addition to the already awarded main contract for the Lagos to Kano railway modernization project.

Minister of Transport, Senator Idris Umar, addressing State House correspondents at the Presidential Villa said, “The contract was awarded to Messrs China Civil Engineering Construction Company (Nig) Limited in the sum of $1.48bn payable at the prevailing exchange rate at the time of payment inclusive of all taxes.

Speaking on the scope of the contract which has a completion time of 36 months, the Minister said, ““The scope of work include survey and design, construction and laying of the track, which is about 156.65km, telephone and signalling components as well as five-year maintenance period.”

Also addressing the correspondents, the Minister of Information, Labran Maku shed more light on the details of the contract.

He said, “One major decision we made today was the modernisation of the Nigerian Railway system. For quite a while, Mr President has given a lot of attention to the transport sector, particularly the development of the railways.

“The standard gauge line, which we approved today in the council is going to run between Lagos, Ibadan, Ilorin, Minna, Kano and there would be a phase that will take off from Minna to Abuja.

“The one from Abuja to Kaduna is under construction.’’