General Electric will rehabilitate and run two of Nigeria’s narrow gauge rail lines for a period of 30 years, the Federal Government has said.
It also announced plans to negotiate a $6bn loan with China for the construction of the Ibadan to Kano rail line, adding that it was in talks with Julius Berger for the full rehabilitation of airports across the country.
In May this year, the Federal Government handed over the letter of award to General Electric as the concessionaire for two narrow gauge rail lines, following the company’s emergence as the preferred bidder.
The government stated that the concession would see the firm invest over $2.2bn in the two major narrow gauge rail lines that traverse several sections of the country.
Outlining some of the projects embarked upon by his ministry while hosting a delegation from Singapore at his office in Abuja on Thursday, the Minister of Transportation, Mr. Rotimi Amaechi, stated that GE would start operating in Nigeria in two months’ time.
He said, “We are giving the narrow gauge rail system to General Electric as a concession. GE will rehabilitate it and run it for 30 years. We concluded on Tuesday. The agreement is being drafted. So, around ending of August or early September this year, we will sign the agreement.
“After we sign the agreement, by October 2017, they will start operating. They will operate and repair the narrow gauge.”
The President/CEO, GE Transportation, Jamie Miller, had in May while receiving the letter of award, stated, “One trunk of the line from Lagos to Kano will pass through several states like Ogun, Oyo, Kwara, Niger, Kaduna and Kano.