Nigeria, China okay $3.9b rail project
The Federal Government and the China Railway Construction Corporation Limited (CRCC) have signed a $3.9 billion agreement for the construction of the Abuja-Itakpe-Warri rail project.
Minister of Transportation, Rotimi Amaechi, during the signing of the memorandum of understanding (MOU) yesterday in Abuja, explained that the project was the first public-private partnership railway pact to transverse Abuja-Lokoja-Baru-Itakpe, adding that the agreement was 15 per cent Nigerian and 10 per cent Chinese equities while the remaining 75 per cent would be borrowed as special purpose vehicle (SPV) from the Chinese Bank.
He added that part of the pact was for CRCC to provide the country with a performance bond from their bank before Nigeria gives a sovereign guarantee for the loan.
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