FG seals 30 year concession of narrow gauge rail with GE, seeks fresh Chinese $6bn loan
The Federal Government may have sealed a build and operate concession agreement with General Electric (GE) to rehabilitate and run two of Nigeria’s narrow gauge rail lines for a period of 30 years.
Major attraction of the government to the deal is the readiness of GE to invest well over $2.2bn in the two major narrow gauge rail lines that traverse several sections of the country.
Business Hilights recalls that in May, the Federal Government had handed over the letter of award to GE as the concessionaire for two narrow gauge rail lines, following the company’s emergence as the preferred bidder.
Explaining more on the scorecard of his stewardship at Transport Ministry, the Minister, Rotimi Amaechi said GE would start operating in Nigeria in two months’ time.
Continuing, 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.
Receiving the letter of award, the President/CEO, GE Transportation, Jamie Miller, observed that “One trunk of the line from Lagos to Kano will pass through several states like Ogun, Oyo, Kwara, Niger, Kaduna and Kano”.
GE has started mobilizing for effective resumption of construction activities on the rail route.