FG Partners Russia On Railway Modernization

• FG Partners Russia On Railway Modernization

In its bid to revitalise and reform the nation’s Railway sector, the Federal Government has signed a Memorandum of Understanding (MoU) with the Russia government on Wednesday.

The Minister of Transportation, Rotimi Amaechi said the country signed the MoU at the ongoing Russia-Africa Economic Forum in Sochi, Russia.

According to him, the agreement between Nigeria and two Russian companies; Russian Joint Stock Company Russian Railway and Transmash Holding will not only build new railways but rehabilitates the existing ones and upgrades workshops in the country.

He added that the agreement would help accelerate the construction of the rail manufacturing company at Kajola in Ogun State.

Meanwhile, the Federal Government and the China Railway Construction Corporation (CRCC) had on 10th of October, 2019 signed a $3.9 billion contract for construction of a railway from Itakpe to Abuja and construction of a seaport in Warri.

The agreement, which is the Public-Private Partnership (PPP), will have Nigeria cover 15 percent of the entire cost of the project while CRCC will cover 10 percent.

The remaining 75 percent, according to the federal government, will be borrowed by the Special Purpose Vehicle (SPV).

To repay the 75 percent loan, the Federal government revealed that the rail would be managed by the CRCC for 30 years after which it would be handed over to the federal government.