The government of Nigeria has announced that it is finalising an agreement over the construction of the new coastal railway connecting Lagos in the south-west of the country to Calabar in the south-east.
China Civil Engineering Construction Company (CCECC) signed an agreement with President Muhammadu Buhari in June 2016 to develop the line. Construction costs are now estimated at USD 11.12 billion, down USD 800 million on the initial estimate.
The Ministry of Transport’s own capital budget for 2017 is USD 800 million, covering rail, water and road transport, so a loan appears to be the only means of financing large scale rail projects.
“Our plan is to complete the rail projects in 2019. Once our borrowing plan of USD 6.1 billion from the Chinese Exim Bank is approved by the National Assembly, we will be able to access the loan from the Chinese government and work will commence immediately”, the Minister of Transport, Rotimi Amaechi, said.
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