The ground breaking of the Lagos-Ibadan segment of the Lagos-Kano standard gauge rail project will hold before the end of next month.
The ceremony will kick-start the construction of the multi billion dollars rail project
Transport minister, Rotimi Amaechi, told the Senate committee on land transport in Abuja, that $1.5 billion credit has been secured from Chinese Eximbank to finance the first phase of the project.
Amaechi who explained that the federal government’s 15 per cent counterpart funding is ready, said the construction of the rail project will begin from Apapa port in Lagos, and pass through Ogun state and then to Ibadan.
Amaechi said: “In the first quarter of 2017, the foundation of the Lagos-Ibadan Segment Two of the Lagos- Kano rail project will be laid.
“The implication here is that we will start the Lagos-Ibadan rail line before March 31.
“Our target is to begin from Apapa sea port down to Ogun and then to Ibadan.
“The counterpart fund is ready but don’t forget that we are borrowing from China. The China Exim Bank is processing it.
“Our 15 per cent is ready. The bank has released $1.5 billion.
“It is also envisaged that Segment Three of the Lagos –Kano rail project, which is Kano-Kaduna stretch, as well as the first phase of the coastal railway line (Lagos-Calabar) beginning from Calabar to Port Harcourt with extension to Onne Deep sea port will begin after the conclusion of the negotiation of a financing loan agreement.”
On the Lagos-Calabar standard gauge rail project, the minister said its construction will begin after the conclusion of the ongoing talks on financing arrangement with Chinese Eximbank