The Minister of Transportation, Rotimi Amaechi has revealed that the Federal Government needs $656 million to complete works on the Lagos-Ibadan railway project.
The minister said this before the National Assembly Joint Committee on Land and Marine Transport while defending his ministry’s 2021 budget on Friday.
According to Amaechi, the amount is needed to put in place necessary infrastructure for the project to serve its intended purpose.
“The Ibadan-Kano railway project also requires $645.3m as advance payment to enable the Federal Government to complete its loan signing agreement with the China Exim Bank,” he added.
Under the railway modern programme, the minister said, I am happy to report that the construction of the Lagos-Ibadan Standard Gauge line has reached 92 per cent project completion.
While speaking, he hinted that for the project to achieve full loan drawdown from the 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, signaling and telecommunication system, power supply scheme and construction of pedestrian and overpass bridges have to be completed,” he outlined.
Accordingly, Amaechi disclosed that this additional and extra works amounting to $656m which is to be financed 100 per cent by the FG has been approved by the Federal Executive Council for implementation.
The minister added, “Similarly, for the implementation of the Ibadan-Kano railway, which is the outstanding segment of the Lagos-Kano railway project, one of the conditions precedent to 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.”
