FG, Firms Set to Construct $60bn Speed Rail in Nigeria
The Federal Government, De-Sadel Nigeria Ltd. and China Liancai Petroleum Investment Holdings Limited are set to commence construction of a 4000km high speed rail across six states of the federation.
This was disclosed during the presentation of the $60 billion proof-of-funds to Secretary to the Government of the Federation (SGF), Sen. George Akume, by the two firms in Abuja on Tuesday.
The occasion was attended by the Minister of Transportation, Mr Sa’idu Alkali and the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo as well as representative of the Attorney-General of the Federation, among others.
Speaking at the event, the Chief Executive of De-Sadel Nigeria Limited, Mr Samuel Uko, said that the company had presented an official proof-of-funds from Asian Development Investment Bank to the federal government for the first phase of the project.
According to him, the project will connect Lagos, Abuja, Kano and Port Harcourt, covering about 1,600 kilometres at the initial stage.
“This administration has given us almost 90 per cent of the necessary approvals.
We have now submitted the proof-of-funds through our financial and technical partners.
”Construction will be in phases. Once we complete the sections, Nigerians will begin to enjoy the train service before the entire 36-month schedule is completed,” Uko said.
He stated that the rail system would require substantial power supply, which in turn would depend on the availability of gas, hence the linkage between the project and the oil and gas sector.
In his remarks, the SGF, while describing the meeting with the investors as ‘stimulating’, said that the proof-of-funds document which had been submitted would undergo scrutiny to confirm its amount and authenticity.
“We do not doubt them, but it is standard procedure for government to verify large financial commitments.
”President Bola Tinubu’s administration has made reforms to ease the cost of doing business, and if investors are ready, Nigeria is ready,” Akume said.
The minister of transportation also said that the project aligned with the ministry’s mandate to provide safe, secure and affordable transportation as well as with the president’s directive to attract foreign investors.
On his part, Ekpo assured the investors of adequate gas supply for the project, noting that Nigeria had proven reserves of 210 trillion cubic feet of gas, with an additional 600 trillion cubic feet in deep-sea deposits.
“Gas is a precursor for this project, and investors will not face shortages,” he said.
Director-General of Infrastructure Concession Regulatory Commission (ICRC), Dr Jobson Ewalefoh, said that the submission of proof-of-funds was a mandatory requirement for the projects.
“They have now presented $60 billion proof-of-funds from China. The next step is for us to review and validate their claims to ensure the project’s viability. “This is in line with the president’s vision that Nigeria is open for serious business,” Ewalefoh said. #FG, Firms Set to Construct $60bn Speed Rail in Nigeria#
