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Delay in foreign loan hindering Abuja-Kano, Port-Harcourt Maiduguri rail projects– FG

The federal government says the delay in securing 85 percent foreign loan is frustrating the construction of the Abuja-Kano and Port-Harcourt Maiduguri rail lines.

 

Mua’zu Sambo, minister of transportation, said this while addressing journalists on Friday in Abuja.

 

Sambo said the ongoing projects are solely dependent on the appropriation of funds.

 

“The Abuja-Kano and Port-Harcourt Maiduguri rail projects are ongoing but there is a challenge of the 85 per cent foreign loan yet to be secured,” NAN quoted Sambo as saying.

 

 “We have been driving these two projects solely through appropriation, which is part of the 15 per cent which Nigeria is supposed to contribute.

 

“Indeed I can tell you for sure that with respect to the Kaduna-Kano rail we have paid completely to the contractor the 15 per cent obligation of the federal government.

 

“Until we have the 85 percent component, the project will have to be continually funded through the appropriation.’’

 

According to the report, the 85 percent loan meant for the rail project was expected to be secured from Chinese financiers.

 

In April, the federal government announced the commencement of the reconstruction of the Port Harcourt-Maiduguri rail line.

 

In August, Sambo issued an ultimatum to the China Civil Engineering Construction Corporation (CCECC) to fulfil an agreement to fund rail projects in Nigeria. 

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