Africans In China

Just as the Federal Government is still pondering on cancellation of the $8.3 billion contact for 1,315 kilometres Lagos-Kano rail project awarded to Chinese firm, CCECC, the French Government has indicated interest to participate in the rail modernization project.

French Ambassador to Nigeria, jean-Michel Dumond told the Minister of Transport, Alhaji Ibrahim Bio that his country was blessed with competent firms to undertake contracts for the construction of modern rail system and rehabilitations of the old gauges.

Ambassador Dumond particularly said the French firm is ready to move in and commence works on the Lagos-Kano rail modernization project should the Federal government decided to revoke the $8.3 billion contract awarded to CCECC.

The Ambassador, who said he has had the privilege and opportunity of travelling to the most parts of the country since assumption of duty in Nigeria, advised that the nation needed a functional rail system to ease movement of goods and hasten the track of development.

Apart from the rail sector, the Ambassador also reiterated the readiness of French to get involve in deepening the development of power and aviation sectors in the country.

Responding, the Minister of Transport, Alhaji Ibrahim, said, though the contract is yet to be revoked because the House of Representatives which fault the award of the contract was currently investigating it.

“The whole project is not yet cancelled and if that happens, I will be the person to announce”, he said.

He said “the Chinese Government has reversed its decision to provide $2.5 billion counterpart funding to Federal Government for the execution of multi-billion dollar modernization of rail projects”.

The Chinese government according to him said it is only committed to the provision of $500 million concessionary loan while Federal Government is to obtain the balance of $2 billion from Chinese banks at current interest rate.

The Minister however, advised the Ambassador to indicate interest in the rehabilitations of the old rail system, which were not in service in the last twenty years, for example, the Port Harcourt-Kano amongst others.

He said President Umaru Yar’Adua has directed that the narrow gauges are to be rehabilitated immediately and that we should procure more locomotive for the hauling of goods and commodities.