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.
Federal Government will commence the project which has been awarded to the China Civil Engineering Construction Corporation (CCECC).
It is being jointly funded by the Nigerian and Chinese governments, and will cost about $1.5bn (N458bn).
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.