FG reviews Lagos-Calabar coast rail contract, saves $800m

The federal government has signed a reviewed contract with the China Civil Engineering Construction Corporation (CCECC) for the Lagos-Calabar coastal rail project.  The project spanning 1402 kms was previously awarded by the administration of ex-President Goodluck Jonathan at $11.97 billion. But after a review, the contract sum dropped to $11.117 billion with some $800 million […]

The federal government has signed a reviewed contract with the China Civil Engineering Construction Corporation (CCECC) for the Lagos-Calabar coastal rail project.  The project spanning 1402 kms was previously awarded by the administration of ex-President Goodluck Jonathan at $11.97 billion. But after a review, the contract sum dropped to $11.117 billion with some $800 million saved.  Transportation Minister Rotimi Amaechi made this known in Abuja yesterday at the contract signing ceremony, where he signed for the federal government while CCECC president, Mr. Cao Bao Gang, signed on behalf of his company. The minister attributed the drop in contract sum to a slump in the price of steel and other allied commodities and tasked the Chinese firm to deliver the project in two years as funding won’t be an issue.  “Since funding won’t be a problem, we have to complete the project in two years. That is: conclude Lagos-Ibadan in two years and Port Harcourt-Calabar in two years. If you achieve that, it will be wonderful. That is my expectation and ambition,” Amaechi said.  The minister said the contract covers Calabar, Uyo, Aba, Port Harcourt, Yenogoa, Utuoke, back to Yenagao, Ughelli, Warri, Sapele, Benin, Agbor, Asaba, and Onitsha and back to Benin. Then Ore, Ije-Ode, Sagamu and Lagos where it will terminate at the seaports.  CCECC president, Gang noted that the coastal rail line was vital to Nigeria’s economic development as it is important for both the South-west and South-east regions and can create more than 5,000 jobs for Nigerians. He assured that the first phase of the project will be concluded in two years. “I assure the minister that we shall train the locals for free on building of railways and to operate it and we shall build steel factory and University that will train the local people. I assure that the one from Abuja to Kaduna is fully completed and we are only waiting for the flag off,” Gang stressed.