Nigeria’s Government and China Railway Construction Corporation (CRCC) signed a USD 3.9 billion Public Private Partnership agreement for the construction of Abuja – Itakpe – Lokoja railway line.
The contract also includes the completion of the railway connection from Warri Central Station to the new Warri Sea Port.
Under the contract, China EXIM Bank will provide a loan covering 75 percent of the total cost of the project, while Nigerian government will contribute with 15 percent and CRCC, 10 percent.
“The contract will be performed under the PPP scheme where the Federal Government and the Chinese company are expected to contribute equity to the cost of the construction. Part of the agreement is that the CRCC will provide us with a performance bond before we give a sovereign guarantee for them to be able to borrow the remaining seventy five percent,” said the Minister of Transport, Chibuike Rotimi Amaechi.
It is expected that under the concession agreement, “CRCC will manage both the railway infrastructure and the seaport and recover the seventy five percent and pay the money. The entire railway will be constructed by CRCC,” the Minister said. CRCC will borrow the remaining 75% from Special Purpose Vehicle (SPV).
The Abuja – Lokoja railway will link Abuja with Itakpe and Warri, in the Southern part of the country. The line will cross through Baro, in central Nigeria, and will have a section to Lokoja, the capital of Kogi State.
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