Hottestgistnaija.com
The Federal Executive Council (FEC), has yesterday 18th July 2012, approved the construction of the Lagos-Ibadan Standard Gauge Rail Double Track with Double Formation under Addendum No. 2 (2nd segment) of the modernization of Lagos-Kano railway project.
Minister of Information, Mr Labaran Maku, who addressed State House correspondents after the meeting-presided over by President Goodluck Jonathan at the Presidential Villa, Abuja said the contracts were awarded in favor of Messrs China Civil Engineering Construction Company Nig Ltd in the sum of $ 1,487,782,196.00 payable at the prevailing exchange rate at the time of payment, inclusive of all taxes with a completion period of 36 months.
He said the approval followed a memorandum presented to the Council on the railway modernization project and the council also approved the variation of the scope of the contract for design and construction of Abuja Rail Mass Transit Project (Lots 1&3) from the initial work span of 60.67km to 45.245km (Lots 1A &3).
The minister noted that the rail project was in 2006 awarded to CCECC Ltd, the same company to execute the project, but could not at that time be completed due to paucity of funds.
“One major decision we made today was the modernization of the Nigerian Railway system. For quite a while, Mr President has given a lot of attention to the transport sector, particularly the development of the railways.
“The projects in the railways took off with the rehabilitation of the existent old rail line system. Today, we took a major step to build a modern rail line between Lagos and Ibadan.
“The standard gauge line which we approved today in the council is going to run between Lagos, Ibadan, Ilorin, Minna, Kano and also there would be a phase that will take off from Minna to Abuja.
“The one from Abuja to Kaduna is already under construction.
“Today, council graciously considered and approved the variation on the scope of contract for the Abuja Rail Mass Transit Project and approved the reduction of about 17 million dollars,” he said.
According to him, the project, which is expected to be completed in 36 months, will generate more than 5,000 jobs in the country.
The minister disclosed that FCT had secured a soft loan from China for the speedy completion of the 45 km rail project in 2013.
