- Rail Concession: FG Signs $45m Interim Agreement With GE
The Federal Government has signed a $45 million interim phase agreement with General Electric (GE) for the concession of narrow gauge rail lines in the country.
The Minister of Transportation, Mr Rotimi Amaechi disclosed this on Monday in an interview with the News Agency of Nigeria in Abuja.
He said that the total money to be invested in the project was 2.7 billion dollars after the whole agreement will be concluded.
According to him, the interim phase includes the rehabilitation of the rail lines, the management of the transportation and Nigerian Railway Corporation (NRC) participation in commercial activities.
“We came to conclusion on the narrow gauge, the interim phase of the narrow gauge, to enable us begin the initial rehabilitation of the rail lines so that we can commence commercial activities.
“Both in terms of cargoes, freight, and transportation, we have signed the initial and temporary agreement.
“We have also agreed on the main agreement which will cost $45million for the interim phase and $2.7billion for the entire project.”
Amaechi said with the interim agreement, GE would commence commercial activities for both cargoes and passengers before October.
He said that GE would be bringing in 10 coaches and 100 wagons, adding that additional 10 locomotives and coaches would be repaired.
He, however, said that by January, GE intends to complete the whole interim process and move to the main phase.