Nigeria signs $11bn agreement on Lagos- Calabar Rail

Hudu Yakubu, Abuja

The Federal Government has signed a Memorandum of Understanding (MOU) with China Civil Engineering Construction Company (CCECC) for the construction of Lagos -Calabar rail line.

Minister of Transport, Rotimi Amaechi who signed the agreement on Friday in Abuja on behalf of the Federal Government said, the first segment of the project is from Calabar to Port Hartcout and it will be completed in two years.

Amechi stated that, the second segment of the rail project is from Lagos to Ibadan and the project will also be completed in two years.

According to the Minister, “the contract was awarded by the Goodluck Jonathan administration for $11.974 billion, however the present administration reviewed the contract and the price was reduced to $11.174 billion” noted Amechi.

He promised that, Federal Government will fulfil its own side of the agreement and make available its counterpart funds timely.

Responding, the president of CCECC, Mr. Cao Baogang said the project will impact positively on the agricultural life of the country.

He revealed that, the project which will run around 650 kilometre across the country will increase the economic development of the country and also create more than 500 jobs when the project is completed.

Mr. Baogang further assured the minister that, the company will meet up with the time frame of the contract.