19 July 2012

Nigeria: FG Okays U.S.$1,488 Billion Lagos-Ibadan Railway Contract

Photo: Ben Parker/IRIN
The Nigerian railway renovation project contracted by a Chinese company.

Abuja — The Federal Executive Council, yesterday, approved the construction of the Lagos-Ibadan Standard Gauge Rail Double Track with Double Formation under Addendum No. 2 (2nd segment) of the modernisation of Lagos-Kano railway project.

Minister of Information, Mr Labaran Maku, who addressed State House correspondents after the meeting said the contracts were awarded in favour of Messrs China Civil Engineering Construction Company Nig Ltd in the sum of $ 1,487,782,196.00 payable at the prevailing exchange rate at the time of payment, inclusive of all taxes with a completion period of 36 months.

Maku who was accompanied by the Ministers of the Federal Capital Territory, Bala Mohammed; Trade and Investment, Olusegun Aganga; Transport, Idris Umar; Power, Barth Nnaji, and Urban and Housing Developmnet, Ama Pepple, said council approved contracts including the implementation of Addendum No. 2 (2nd segment: Lagos-Ibadan to the main contract for the railway modernisation project (Phase 1; Lagos-Kano) for the Ministry of Transport.

According to him, the council also approved the variation of the scope of the contract for design and construction of Abuja Rail Mass Transit Project (Lots 1&3) from the initial work span of 60.67km to 45.245km (Lots 1A &3).

With the variation, the contract sum was reduced from $841,645,898.00 to $823,540,545.87 payable at the prevailing exchange rate, at the time of payment inclusive of 5 per cent VAT and 5 per cent variation on prices.

Speaking on the other contracts in the power sector, Maku said in line with accepted best practice in the operation and maintenance of hydropower the council approved the supply and installation of parts for the 2 x 140MW Units 411G3 Generators at Shiroro Hydroelectric Plc, in favour of Messrs AsNDRITZ Hydro GmbH, in the sum of N2,075,754.00.

This is in addition to the naira sum of N13,326340.68 to be retained by Shiroro Hydroelectric Plc to cover 1% CISS fees and 2% Port and Handling charges, with a completion period of eight months.

Council also approved the restoration of four Plant units and balance of plant at Omotosho Power Plc in favour of China Machinery and Engineering Corporation in the sum of USD 10,092,771.15 payable at the prevailing exchange rate at the time of payment, plus N78,753,893.30 for 5% VAT with a completion period of 6 months.

Speaking on investment drive in the country, Minister of Trade and Investment, Olusegun Aganga said Nigeria has improved in the FDI attaraction index to 23rd position making it a first quarter country for FDI attractiveness.

In another development, Nigeria is said to have made the final list of Common Wealth Association of Public Admnistration and Management (CAPAM). It is the first time Nigeria is participating in the international innovations award

The Ministry of Health made a summation on their midwives services scheme. The scheme is meant to address one of the goals of the MDGs that has to do with the reduction of maternal and infant mortality. It is a federal government programme by the ministry of health that employs qualified midwives, some of them retired and newly qualified ones.

Copyright © 2012 Vanguard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.