FG saves $800m on coastal railway renegotiation with Chinese firm
The Federal Government has signed a contract agreement with the China Civil Engineering Construction Corporation (CCECC) on the construction of the Lagos-Calabar Coastal Railway project.
The Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi who signed on behalf of the Federal Government of Nigeria, said that the contract was an addendum to the Lagos-Calabar Coastal Railway project which was initially awarded by the former President Goodluck Jonathan’s administration to CCECC at a contract sum of $11.917 billion.
He noted that at the inception of President Muhammadu Buhari Administration, the Federal Government renegotiated the contract with the management of company and agreed at a contract sum of $11.117 billion thereby saving a whooping sum of $800million.
Amaechi reiterated that the government had completed the signing of the same contract with a different contract sum in order to legalize the new deal.
He said: “What we have done today is signing same contract but different contract sum to make it legal.”
The minister explained that part of the contract agreement with CCECC was to expedite action and conclude arrangement with the China-Exim Bank to facilitate the commencement of work on the Railway project noting that his desire and expectation is the completion of the project in two years.
The minister assured that funding would not pose any hindrance to the smooth commencement and final completion of the Lagos-Calabar Coastal Railway project.
“President Muhammadu Buhari has assured me that he is committed to the development of the Railway Sector in Nigeria and would not leave any ‘stone unturned’ to achieving that dream”, he said.
Amaechi said that his ministry’s determination was to conclude the 1st and second segments of the projects which run through Calabar-Uyo-Aba-Port Harcourt-Yenogua-Otuoke-
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