VENTURES AFRICA – Nigeria has signed agreements with China for the construction of the Lagos- Ibadan Standard Gauge Rail Double Track.
The contract which is aimed at modernizing the Lagos-Kano railway project is valued at $1.49 billion and was announced on Wednesday by government officials led by the Minister of Information, Labaran Maku at State House Abuja.
According to the minister, the contract was awarded to Messrs China Civil Engineering Construction Company Nig Ltd and is expected to be ready for commission in 36 months. “The contract is in favour of Messrs China Civil Engineering and Construction Corporation (CCECC), with a completion period of 36 months”, Maku said.
He also announced a change in the scope of work for design and construction of Abuja Rail Mass Transit Project (Lots 1 and 3) from the initial work span of 60.67 kilometres to 45.245 kilometres (Lots 1A and 3) upped the amount payable from $841,645,898.00 to $823,540,545.87 payable at the prevailing exchange rate inclusive of 5 percent VAT and 5 per cent variation on prices.
Furthermore, the Federal Executive Council (FEC) also awarded the contract for the supply and installation of two units of 140MW 411G3 generators at Shiroro Hydroelectric Plc to Messrs ANDRITZ Hydro GmbH, at a cost of $3.26 million.
Construction of the tracks will be surely open up Africa’s second largest economy as foreign investors seek to explore business and trade opportunities in the serially labelled land of potential.