FG, CCECC Sign MoU for $11.117bn Lagos-Ibadan, Calabar-PH Railway Contract

• Amaechi: $800 million saved through re-negotiation of contract

Dele Ogbodo in Abuja

The federal government on Friday signed the Memorandum of Understanding MoU on the lagos-Ibadan and Calabar-Port Harcourt railway projects with the China Civil and Engineering Construction Company (CCECC) for $11.117 billion, saving $800 million from the initial estimated value of $11.917 billion.

The contract which is considered the largest and most ambitious in the country’s rail project will connect the South west and South east political zones will terminates at the various sea ports.

At the signing ceremony in Abuja, the Minister of Transportation, Mr. Rotimi Amaechi , said the contract which was initially negotiated by the Goodluck Jonathan administration will be completed in two years.

He expressed optimism that federal government will meet its counterpart funding of 15 percent, the China EXIM bank will defray the remaining 85 percent cost of the project.

More to follow…