Nigeria to spend 8.3 billion dollars on rail project

The Nigerian government has said it planned to spend 8.3 billion U.S. dollars on the rehabilitation and modernization of the country's railway system.

In a special nationwide broadcast on Wednesday evening, specifically to outline government's plan to revive the ailing railway system, Nigerian President Olusegun Obasanjo said the first phase of the project should be completed within four years.

He said that 2 billion dollars of the cost would be obtained as a soft loan from the Chinese government, noting that the second phase covering the Port Harcourt to Jos line would commence as soon as the first phase was completed.

"Contract formalities for the award and commencement of Lagos- Kano First Phase Project of the modernization program will be signed this month; and construction work will commence immediately thereafter," he said.

He said the government was committing 2.5 billion dollars and 1 billion dollars from the Chinese government concessionary loan in addition to a 1.5 billion dollars federal government counterpart funding on the project between 2006 and 2007.

"It is my hope that subsequent administrations will buy into this vision and that other friendly countries will offer similar concessionary loan assistance to continue the project in the years ahead with the possibility of a West African regional railway system," he said.

He therefore warned those that had encroached on railway land to "quietly leave such piece of land to save the government and themselves the effort of using all means to reclaim such right of way."

He also said that there would still be the need to acquire new land for the modernization and expansion to new locations and appealed to state governments and land occupiers to co-operate in making land available for this all-important project.

"No nation has achieved holistic development in all its ramifications without a coherent, integrated, efficient and reliable transportation system," he said, while emphasizing the need for the federal government to revive the railways for the benefit of all.

He said a combination of corruption, poor management, inefficiency, lack of adequate marketing, failure to develop new lines and to plan ahead or introduce new technology and adaptation to global best practices led to the near total collapse of the nation's railway.

"Today, we have a new vision, a new commitment, and a holistic strategic plan encompassing expansion and modernization of the Railway to be implemented within a 25-year time frame," he said.

The construction of the rail line will employ tens of thousands of Nigerians immediately. The entire project will promote technology transfer, the building of new skills, and the development of rail allied industries. As much as possible, local materials will be used.

Source: Xinhua