The commencement of work on the $5.3 billion Ibadan-Kano rail line is being stalled by the delay in approving the loan by the Chinese government, findings have shown.
The project ought to have started this December but for the anticipated loan which is yet to come to fruition, sources told Daily Trust on Thursday.
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The Ibadan-Kano line is part of the 2,700 kilometre Lagos-Kano rail standard gauge line which will connect the Port of Lagos to Kano.
The sections completed are the 187 km Abuja-Kaduna section and the 156km Lagos to Ibadan section.
The Federal Government had this year approved another 248km Kano-Maradi line which connects Nigeria to its neighbouring Niger Republic. The project would cost $1.9bn.
But unlike the Ibadan-Kano rail, the Kano-Maradi is expected to be funded through the appropriation.
However, for the Ibadan-Kano rail to be handled by the China Civil Engineering and Construction Corporation (CCECC), there is uncertainty over the loan.
It became controversial recently with the Minister of Transportation, Mr. Rotimi Amaechi, urging the National Assembly not to debate the loan as it violates the terms of agreement with the Chinese government.
It was learnt that the Chinese Government through the China Exim Bank was to approve the loan this December but that was yet to be done.
The Federal Government also approved $303 million as counterpart funding for the loan and targets 2023 for its completion, but a source privy to the project said this is dependent on the early commencement of work.
The official said it is unlike the Lagos-Ibadan project which is being delivered in less than three years.
When asked last weekend on the update, the minister said he has no idea when it would start as the loan was yet to be approved.
“It is important that Nigerians know that the Ministry of Transport does not take loans. The earlier we get that into our psyche the better for us.
“Everybody has his own responsibility. It is the responsibility of the Ministry of Finance to seek loan and pass on to the Ministry of Transportation to implement.
“The only loan we have taken so far in the Ministry of Transport was the $500m loan for Kaduna-Abuja train and the $1.4bn loan for this (Lagos-Ibadan).
“The rest are just proposals that are yet to come to fruition,” Amaechi clarified.
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