By Akanimo Sampson
President Muhammadu Buhari’s administration has borrowed a total of $ 2.5 billion towards the Lagos-Ibadan Rail Project cost.
Transportation Minister, Chibuike Amaechi, who revealed this said the funds were borrowed from the Export-Import Bank of China, one of three institutional banks in the East Asian country chartered to implement the state policies in the industry, foreign trade, economy, and foreign aid to other developing countries, and provide policy financial support so as to promote the export of Chinese products and services.
The revelation is coming as the construction of Ekiti Agro-Allied Cargo Airport in Ekiti State has begun.
This is after Governor Kayode Fayemi handed over the site to the main contractor, CCECC Nigeria Ltd.
CCECC is a subsidiary of China Civil Engineering Construction Corporation that provides construction and engineering services in the West African country.
During the site handover ceremony, Fayemi described the project, which mainly entails the construction of 3.2 kilometres runway, as a promise made and kept for the development of the state.
According to Fayemi’s deputy, Bisi Egbeyemi, the construction of the airport’s runway pavement would be completed within a span of 15 months, in line with the timeline agreed with the contractors.
Describing the project as a milestone for his administration and the people of Ekiti, Fayemi noted that the cargo airport will enable the fast movement of agricultural products to the international market.
He explained that Ekiti, which is mainly an agricultural state is blessed with hardworking farmers and investors who are ready to produce in commercial quantities, once there is an assurance that their goods will reach local and international markets.
“It is with no doubt, that Ekiti is a landlocked state that borders with other landlocked states such as Kwara, Osun, Edo, except Ondo that has a sea. This situation has made it difficult for our people and people of the neighbouring states to transport goods, especially agricultural products, to local and international markets.
“The establishment of this agro-allied cargo airport will also help improve the socio-economic development of our state when fully completed”, the governor said.
However, the Lagos-Ibadan line is a double-track standard gauge rail, the first of its kind in the West Africa region. It runs from Nigeria’s economic hub and most populous city, Lagos, to Ibadan, the capital of Oyo state, with a total of 10 stations.
With trains operating at a maximum speed of 150 km/h, the infrastructure according to the contractor, CCECC, cut the travel time between the two cities to two hours.
This project is the second segment of the new 2,733km Lagos–Kano Standard Gauge Railway line project. The latter is a modernisation initiative in the West African country aimed to replace the existing British-built Cape narrow gauge system, which has a lower design capacity and in a deteriorated condition, with a wider standard gauge system and allowing high-speed train operations on the railway network.
Amaechi explained that the Buhari administration made a decision to borrow $ 2.5billion towards the Lagos-Ibadan Rail Project cost, which was not part of the original plan, to extend the rail line to the nation’s seaports for “the economic benefit associated with it”.
“We had to take about 45 kilometres rail from Ebute-Metta into Apapa seaport. There is an additional one connecting Tincan Island Seaport to Apapa”, he explained.
