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Forums  /  General Discussion  /  Market Place v  /  FG Signs $3.9bn Deal With Chinese Firm For Abuja-itakpe Railway Construction
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FG Signs $3.9bn Deal With Chinese Firm For Abuja-itakpe Railway Construction
Edoman Offline
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10-11-2019, 11:25 AM
The federal government on Thursday, October 10, signed a deal of $3.9 billion with China Railway Construction Corporation (CRCC) for the construction of the Abuja-Itakpe railway.

The Chinese firm, according to Rotimi Amaechi, the minister of transportation, will also handle the construction of a seaport in Warri, Delta state, Daily Trust reports. S Tonguepeaking in Abuja during the signing ceremony, Amaechi said that the Public-Private Partnership (PPP) agreement states that Nigeria will take care of 15% of the cost, while CRCC will handle 10% of it.

The minister also stated that the remaining 75% will be borrowed by the Special Purpose Vehicle (SPV) which the federal government will pay back in a period of 30 years after which it will take back ownership of the assets.

He said: “We will give them a sovereign guarantee and they will give us a performance bond that protects our sovereign guarantee

When they finish construction, they will manage for 30 years. “The entire railway for now in Nigeria is constructed 100 by CRCC. I think that the good working relationship we have had with CRCC is the reason we have not been able to engage other companies.”

https://thickmatch.com/fg-signs-3-9bn-deal-chinese-firm-abuja-itakpe-railway-construction/

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