The construction of a standard gauge rail line from Lagos to Ibadan by the Nigerian government is to begin next month, the Managing Director, Nigerian Railway Corporation (NRC), Fidet Okheria, has said.
Minister of Transportation, Rotimi Amaechi, who signed on behalf of the Federal Government, had said the cost reduction for the projects was achieved after the contract was renegotiated by both parties.
“The contract was awarded by the regime of former President Goodluck Jonathan for $11.917bn. When we took over at the ministry, we renegotiated with the CCECC and we succeeded in reducing the contract sum from $11.917bn to $11.117bn and we are able to save $800m after the renegotiation,” he had explained.
According to NRC boss, Okheria, the Federal Government has made its counterpart funds available, while China promises to release its own by the end of this month.
This is coming about six months after the Federal Government and the CCECC signed an agreement for the project.
Okheria added that the new Lagos-Ibadan rail which spans 156.65 kilometres, is a double line, which is the first phase of a new Lagos-Kano standard gauge line, and when completed in 18 months, would coexist with the old narrow gauge rail line.