A large light rail in the Nigerian state of Kano will be built by a Chinese company
A preliminary contract for the construction of a light rail line worth $ 1.85 billion in Kano State in northern Nigeria has been concluded with a Chinese state-owned construction company.
China Railway Construction Corporation (CRCC) said yesterday in an official statement that two of its subsidiaries had entered into a preliminary agreement for the construction of four lines with an estimated speed of 100 km / h and a total length of 74 km. The state capital, Kano, has been subjected to repeated aggression in recent years. . In November 2014, one hundred people died in the bombardment and shelling of the mosque, and in November 2015, the bombing of the Shiite procession killed 21 people. Both attacks were attributed to the radical jihadist group Boko Haram. Last week, the former US ambassador to Nigeria, John Campbell, warned that the terrorists Boko Haram would resume the attacks on Kano state.
The problem of infrastructure deficit is aggravated by the fact that the Nigerian economy has suffered greatly from falling oil prices, which makes it difficult to implement the country's development plans proposed by the new President Muhammad Bukhari.
However, according to Reuters, Finance Minister Kemi Adeosun said earlier this month that an additional $ 180 million will be allocated to projects of national importance in the 2016 budget to give a boost to the country's economy.
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Ms Adeosun said that Nigeria would resort to partnership with the private sector to attract investments, and also mentioned the fact that the government is negotiating with General Electric for the construction and maintenance of a railway network that would improve the transportation of goods, Reuters informs.
China has an important role in the development of Nigeria’s transport infrastructure. In July of this year, Nigeria signed an agreement with another Chinese construction giant, China Civil Engineering Construction Corporation, to build the 1,400-kilometer coastal railway Lagos - Calabar for $ 12 billion, one of the most expensive railway projects in African history.
In the meantime, the CRCC made it clear that the cost of the light rail contract, if signed, amounts to 2% of their 2015 revenue. They added that the contract will be implemented in two stages, each of which will take two years.
On the Nigerian side, a preliminary agreement was signed by the Minister of Labor, Housing and Transport of Kano State.