The Federal Government today (July 1, 2016) signed a fresh agreement with the China Civil Engineering Construction Company (CCECC) to commence construction of the Lagos-Calabar coastal railway line at a cost of $11.117 billion.
The contract was renegotiated and reviewed downward to $11.117 billion from the $11.917 billion it was initially valued at when it was initiated by the Goodluck Jonathan administration.
Explaining why it was reduced, Minister of Transportation, Rotimi Amaechi who signed the contract on behalf of the Federal Government in Abuja said it was due to drop in prices of key materials such as steel among others.
“We are today signing contract for the awarding of the Lagos Calabar rail line at the cost of $11.117billion. Initially, that project was to be awarded by the Goodluck Jonathan administration at the cost of $11.917billion, so we have been able to secure a price reduction of $800 million due to negotiations and the fall in price of some commodities in the world market. But it is basically the same contract but at different price. The first segment, Calabar and Port-Harcourt by my expectation will be ready in two years and they are to be linked with all the sea ports”, he said.
Speaking after the signing, Cao Bao Gang, president of CCECC, said he was committed to timely execution of the project.