The contract was initially valued at $11.917billion when it was
initiated by the Goodluck Jonathan administration but has been reviewed
downward to $11.117 billion.
The reduction in contract sum is attributed to drop in prices of key materials such as steel among others, said Rotimi Amaechi, minister of transportation while signing the contract on behalf of the Federal Government on Friday in Abuja.
In view of the urgency of the project, he said first segment of the rail line which comprises Calabar,Uyo,Aba, and Port-Harcourt will be ready within two years nothing that the contract signifies the Federal Government’s resolve to pursue aggressive diversification plan for the economy especially as the coastal rail project when completed will link with all sea ports, together with the main western line, thereby creating new business hubs for commercial activities.
“We are today signing contract for the awarding of the Lagos Calabar rail line at the cost of $11.117billion. Initially, that project was to be awarded by the Goodluck Jonathan administration at the cost of $11.917billion,so we have been able to secure a price reduction of $800 million due to negotiations and the fall in price of some commodities in the world market. But it is basically the same contract but at different price. The first segment, Calabar and Port-Harcourt by my expectation will be ready in two years and they are to be linked with all the sea ports”, he said.
While assuring that government will push for timely payment of its counterpart funds to the coastal rail project despite paucity of funds, he stressed that the Abuja-Kaduna is currently being test run for free, adding that plans are underway to procure more coaches to increase carry capacity of commuters and cargo.
Speaking after the signing, Cao Bao Gang, president of CCECC, assured of commitment to execute the project saying nothing that the signing of Lagos Calabar rail line will further enhance Nigeria’s economy, in addition to boosting cheap transportation of commuters and cargo at all times.
Gang who led a team of CCECC management to sign the contract, stressed also that the Chinese company will build factories in Nigeria where it can fabricate materials necessary for servicing the rails, even as he pledged to transfer the technology in the areas of manufacturing, maintenance and other aspects of engineering.
He also promised on behalf of the company to keep to the two years completion period for the first segment of the job.
Source: Business Day.
The reduction in contract sum is attributed to drop in prices of key materials such as steel among others, said Rotimi Amaechi, minister of transportation while signing the contract on behalf of the Federal Government on Friday in Abuja.
In view of the urgency of the project, he said first segment of the rail line which comprises Calabar,Uyo,Aba, and Port-Harcourt will be ready within two years nothing that the contract signifies the Federal Government’s resolve to pursue aggressive diversification plan for the economy especially as the coastal rail project when completed will link with all sea ports, together with the main western line, thereby creating new business hubs for commercial activities.
“We are today signing contract for the awarding of the Lagos Calabar rail line at the cost of $11.117billion. Initially, that project was to be awarded by the Goodluck Jonathan administration at the cost of $11.917billion,so we have been able to secure a price reduction of $800 million due to negotiations and the fall in price of some commodities in the world market. But it is basically the same contract but at different price. The first segment, Calabar and Port-Harcourt by my expectation will be ready in two years and they are to be linked with all the sea ports”, he said.
While assuring that government will push for timely payment of its counterpart funds to the coastal rail project despite paucity of funds, he stressed that the Abuja-Kaduna is currently being test run for free, adding that plans are underway to procure more coaches to increase carry capacity of commuters and cargo.
Speaking after the signing, Cao Bao Gang, president of CCECC, assured of commitment to execute the project saying nothing that the signing of Lagos Calabar rail line will further enhance Nigeria’s economy, in addition to boosting cheap transportation of commuters and cargo at all times.
Gang who led a team of CCECC management to sign the contract, stressed also that the Chinese company will build factories in Nigeria where it can fabricate materials necessary for servicing the rails, even as he pledged to transfer the technology in the areas of manufacturing, maintenance and other aspects of engineering.
He also promised on behalf of the company to keep to the two years completion period for the first segment of the job.
Source: Business Day.
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