The Minister of Transportation, Mr. Rotimi Amaechi, has stated that the Federal Government needs a total funding of $656 million to complete work on the Lagos-Ibadan railway project.
This disclosure was made by the Minister, during the 2021 budget defence of the Ministry before the Joint Committees of the Senate and House of Representatives in Abuja, on Friday, according to ChannelsTV.
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He said that for the project to achieve practical completion for the intended purpose, some aspects of works involving construction of upgraded railway stations, signalling and telecommunication system, among others, have to be completed.
These additional works amount to a total cost of $656 million, which is to be financed 100% by the Federal Government, is needed.
What they are saying
During the budget presentation session today, the Minister said:
“For the project to achieve full loan drawn down from our co-financier, China EXIM Bank, and attain practical completion for intended purpose, some aspects of works involving construction of upgraded railway stations, signaling and telecommunication system among others have to be completed.
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“These additional and extra works amounting to 656 million dollars which is to be financed 100 per cent by the Federal Government has been approved by the Federal Executive Council (FEC) for implementation.
“Therefore, in order not to forestall the progress of implementation, adequate fund needs to be provided in the 2021 budget proposal to facilitate the completion of the project.”
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What you should know
During the budget presentation session today, before the Joint Committees of the Senate and House of Representatives, Mr. Amaechi proposed a total capital budget of N205,161,882,492 to cover: Land, N204,316,793,527; Marine, N845,088,965; and overhead of N358,799,999 in the 2021 budget for consideration.
The Minister said that the aims and objectives of the proposals were to make significant progress on all ongoing projects, as well as to complete and deliver modern railway services.
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In his presentation, he disclosed that under the railway modernisation programme, the construction of Lagos – Ibadan Standard Gauge line had reached 92% completion, and funds were needed for the project to reach practical completion.
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