New Telegraph

FG to look beyond China for loans to finance rail infrastructure, says Amaechi

rotimi amaechi ameachi

…to shutdown portion of Lagos-Ibadan rail project

Minister of Transportation, Rotimi Amaechi, has said that the Federal Government may look for alternative sources for loans to finance rail infrastructure in the country if China fails to perform on the loan deal with Nigeria.
The minister dropped the hint that the government was already considering to approach banks in Europe for loans to finance rail projects Friday at a briefing organised by the Presidential Communication Team at the President Villa.
Amaechi also disclosed that the government would commence the $1.2 billion Kano-Kaduna rail project in the next two weeks.
Commenting on the delay in the release of the Chinese loan to finance the Ibadan-Kano line, Amaechi said: “If the Chinese don’t turn up in the next few months, why shouldn’t we approach the European banks to fund the Ibadan to Kano line? I will put that before the Minister of Finance. The Standard Chattered Bank has agreed to fund Lagos – Calabar, we are negotiating with them. We are negotiating Port Harcourt – Maiduguri. Kano – Maradi is funded by Pedy-Swiss. We would look for money from everybody.
“If we wait for the loans either from China or Europe, we may not be able to complete the project before we go. So, I have told the President that I will commence the project with our own funds, pending when the loan comes.”
The Minister also announced that government would shutdown cargo operations on the Apapa-Ebute Meta end of the newly flagged off Lagos-Ibadan rail project over defects in construction work along a section of the tracks.
The shutdown, expected to last for about three months, he said, followed discovery of soil defects on a refuse dump portion of the Apapa to Ebute Metta axis.
The President had recently commissioned the $1.5 billion Lagos-Ibadan rail line with the evacuation of cargo to the Ibadan dry port seen as a major component to ease the traffic gridlock along the Apapa and the Tin-can ports.
The Minister expressed fears that if the defects are not immediately rectified, a portion of the rail line runs the risk of sinking in the near future.

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