Kaduana close to $625m light rail deal to develop north

Kaduna State is close to agreeing a $625 million deal with an Indian consortium to build a light railway and also plans two new power plants, its governor said. The State Governor, Mallam Nazir El-Rufai disclosed this in an interview with Reuters.

Development in Africa’s biggest economy has been held back for decades by a mismanagement, graft and lack of investment in its road, rail and power network.

Northern states, many of which have suffered a seven-year insurgency by Islamist militant group Boko Haram, have lagged behind the oil-producing south in terms of development, which has helped radicals recruit poor youths.

El-Rufai, governor of one of the largest northern states Kaduna said a deal to build a 44 km-long light rail line in the state had almost been reached.

“We have gone through a procurement process. We are on the verge of concluding agreement with an Indian consortium, Indo-Kaduna Metro joint venture,” he said in an interview, adding that rail consultant Systra and Indian power firm Skipper were part of the project.

“This is going to be funded by the Indian Exim bank, $625 million. The application is already being processed by the Indian exim bank. It is more or less a done deal,” he added, without naming more firms involved.

The governor, one of the most high-profile members of the ruling All Progressives Congress (APC) party, said work would begin in January lasting for 30 months.