The Minister of Transport, Rotimi Amaechi, on Friday, said the Lagos Ibadan railway line will require $656m to complete and meet public use.
Amaechi who said the project has reached 92 per cent completion pointed out that other ancillary components of the project would cost this much.
The Minister of Transport stated this while defending his ministry’s 2021 budget before the National Assembly Joint Committee on Land and Marine Transport in Abuja.
He said that the Ibadan-Kano railway project also required $645.3m as advance payment to enable the Federal Government to complete its loan signing agreement with the China Exim Bank.
Amaechi said, “Under the railway modern programme I am happy to report that the construction of the Lagos – Ibadan Standard Gauge line has reached 92 per cent project completion.
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“However, for the project to achieve full loan drawdown from our co-financier, China EXIM Bank, and attain practical completion for it to be used for the intended purpose, some aspects of works involving construction of upgraded railway stations, signalling and telecommunication system, power supply scheme and construction of pedestrian and overpass bridges have to be completed.
“This additional and extra works amounting to $656m which is to be financed 100 per cent by the Federal Government of Nigeria has been approved by the Federal Executive Council for implementation.
“Similarly, for the implementation of the Ibadan -Kano railway which is the outstanding segment of the Lagos-Kano railway project, one of the conditions precedents to the signing of the loan agreement is the release of advance payment in the sum of $864m.
“Out of which Government has released the sum of $218.7m as part payment leaving a balance of $644.3m”
He said the Ministry plans to complete the fencing of the Abuja-Kaduna railway line for security purposes.
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