The Federal Executive Council (FEC) approved a $122.62 (N37.39b) contract for the rehabilitation of Ajaokuta-Itakpe rail line, following a memorandum submitted by the Minister of Transport, Rotimi Amaechi.
Information Minister, Lai Mohammed, who briefed newsmen on the development, said that it involved track laying, permanent way works and ancillary facilities area and completion of 12 railway stations.
The contract is in favour of Messrs CCECC Nig Ltd, and is inclusive of all taxes at the prevailing CBN exchange rate of one dollar to N305, with a completion period of 15 months.
According to him, Ajaokuta to Warri track is in good condition and when the new contract is completed, access to the seaport will be better for the evacuation of goods.
Mohammed disclosed that the Transport Ministry also submitted a memo for the interim phase arrangement for the concession of the Nigeria’s narrow gauge railway system which was approved.
He said that the approval was to issue a letter of consent to General Electric so that by October 2017 there would be full utilization of Lagos–Kano and Port Harcourt-Calabar–Maiduguri line.