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Nigeria signs agreement with construction company for Abuja-Itakpe Railway

The Nigerian government has signed it’s first Public Private Partnership railway agreement for Abuja- itakpe and Abuja- Baru-itakpe and lokoja with the China Railway Construction Corporation, CRCC.

The Minister of Transportation, Mr Rotimi Amaechi, who signed the agreement said it was supposed to be 15% Nigeria and 10% CRCC equity and then 75% as Special Purpose Vehicle will be borrowed.

Mr Amaechi said CRCC would provide a performance bond from their bank before government gives sovereign guarantee.

There is a concession agreement that CRCC will hold 75 percent. The entire Nigerian railway is constructed 100 by CRCC. The good working relationship with the company is the reason other companies have not been engaged by the country.

I don’t know why we have not concluded Ibadan dry port, we need to conclude. Nigeria is waiting for CRCC at Abuja to itakpe and warri seaport, the Minister also said.

He explained that there was need for CRCC continue work at the site and instructed that both CCECC and CRCCI ensure local participation of both Nigerian engineers and contractors.

We need you to work with us to develop the knowledge of Nigerians, that’s why we emphasize on you building universities and provide us with lecturers until we can train our own lecturers. Just like we are holding CCECC on issue of manufacturing at Kajola, for which we have awarded them the contract of about 500 million dollars to build for us rolling stock for Lagos-ibadan.

The Transportation Minister also noted that government would resume conversation with CRCC on the issue of manufacturing railway components in Nigeria.

Source: Voice of Nigeria