We haven’t spent $8bn on rail projects – Amaechi
Minister of Transportation, Rotimi Amaechi has revealed that the federal government is yet to spend in excess of eight billion dollars on current rail projects.
Amaechi further revealed that the ongoing rail projects (Lagos-Kano, Port Harcourt-Maduguri, Lagos-Calabar and Abuja-Warri rail lines) by current administration will need about $45 billion dollars to be completed.
“The Lagos-Ibadan rail will cost about $1.6 billion, that doesn’t include the extra cost of things we didn’t prepare for or see in the evaluation; Abuja-Kaduna was constructed with about a billion dollars,” Amaechi told News Agency Nigeria.
“We also paid $500 million to buy locomotives and rolling stocks for Lagos-Ibadan rail. I can’t remember how much we spent buying rolling stocks for Kaduna-Abuja, that is what we have spent so far.
“So all the noise that you hear people saying we have spent 8 point something billion dollars is not true. I don’t think we have spent up to three billion dollars so far. Railway is capital intensive; a trillion naira is about $2.7 billion.
“And that is for 200km of railway, if you plan to do Lagos-Ibadan and you are looking at 8.7 billion dollars that is between 3 trillion and 4 trillion Naira. That is why I said we will need about 35 to 45 billion dollars,” he added.
With the federal government approving the building of a new seaport in Warri, contract has also been awarded for the rail connecting Abuja with Warri and Itakpe and Abuja.
Business and Lifestyle Editor at Wheel NG