The federal government has given the Ministry of Transportation the go ahead to borrow the sum of $2.9 billion to enable work commence on the Lagos – Calabar coastal rail line.
The Minister of Transportation, Rotimi Amaechi revealed this on Thursday in Abuja at his valedictory press briefing said the country needs $36 billion to connect the whole country .
According to him, work will begin from the Porthacourt to Warri segment that connects the central line to Abuja.
Amaechi said another segment will start from Benin to Onitsha and link the Central line at Agbor while Port Harcourt to Warri line will link the central line to Warri.
The minister further explained that the Benin to Onitsha will link the central line at Agbor with other part of the Coastal rail line is estimated about $11.1 billion .
He explained that it was the idea of President Muhammadu Buhari that the the rail line should connect a Central line to Abuja passing through Baro, so that people from the South-South and South-East can go to Abuja by joining the Central line using the Coastal Rail .
“At this point, we have Lagos to Kano which is the Western line and it can connect to the Eastern line .
“The Eastern line will lead from Porthacourt to Maiduguri and transverse within the country,” he said.
On the Central line project, the minister said the Federal Government will give a guarantee of loan to enable them get a quick loan .
He said the contractors will give a performance guarantee . “We are still negotiating with them and when is been resolved , we will go back to the cabinet for approval”.
He also said China had insisted that Nigeria opens a sinking fund and an escrow account in order to be able to seamlessly repay the loans which Nigeria borrowed from the Asian country for the construction of rail projects, particularly the Abuja-Kaduna rail.
