By CALEB AYANSINA
ABUJA – FEDERAL Government, yesterday, signed a Memorandum of Understanding of $ 1.5billion Lagos – Ibadan rail project with Messrs CCECC Nigeria Limited.

The Federal Executive Council had on July 2012 approved Lagos – Ibadan Standard Gauge Track on double formation, covering a distance of 156.65km, totaling 313.30km double track in favour of the company, in the sum of US$1, 487, 782, 196.00, all taxes inclusive.

Signing on behalf of the government, the Minister of Transport, Senator Idris Umar noted that the contract signified continued commitment of the federal government’s policy to the modernization of the railway system in the country.

The contract which will last for 36 months according to Umar, will be partly financed by the Chinese Government through China EXIM Bank Concessionary loan facility.

“Under the agreement, the loan facility to the tune of US$1.0 billion is going to be provided by the China EXIM Bank. However, negotiation has been concluded with the China EXIM Bank, for an initial US$500 million during the negotiations in China which was led by the Coordinating Minister for the economy.

“The negotiation on the balance sum of US$500 million is expected to be done in due course. The federal government of Nigeria is expected to pay the balance of the project fund in the sum of US$530, 779.101.00.

“Let me assure all Nigerians that the contract for the completion and rehabilitation of the 274km Itakpe – Ajaokuta – Warri Standard Gauge Railway line is in progress. Work has progressed steadily with all the tracks laid, while the outstanding works currently are the completion of construction of interchanges and ramps, station building and signaling and telecommunications.

“The amount of political will and financial commitment of the federal government of the transformation of the Nigerian railway so far, you will all agree with me, is laudable and speaks volume of what a responsible and public-spirited government can embark upon in the shared conviction, that a sure means of transportation is a major component of economic development and social integration”.

The Minister then enjoined “the contractor to commit the whole of their professional and technical expertise and capacities to undertake the project to the agreed standards and specifications, with a view to completing the works within the agreed time”.

The Managing Director of Messrs CCECC Nigeria Limited, Mr. Cao Bao Gang promised to abide by the terms of the agreement, adding that the project when completed will provide five thousands jobs for the people.