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Govt of Nigeria inks PPP deal for rail project

Wednesday, 16 Oct 2019
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The Government of Nigeria has inked USD 3.9 billion public private partnership (PPP) agreement with the China Railway Construction Corporation (CRCC) for construction of Abuja-Itakpe railway project.

In the agreement, the government of Nigeria holds an equity stake of 15 percent and CRCC equity 10 percent and the remaining 75 percent will borrowed as special purpose vehicle (SPV) from the Chinese bank. The entire rail facilities are being executed by CRCC and its subsidiaries.

The contract also covers construction of the Warri sea port. CRCC will operate both the rail and sea port, recover the money, pay back the debt and hand over the facility to Nigeria under PPP that will last for 30 years. Nigeria’s rail system consists of 3,505 km of three ft six inches (1,067 mm) gauge lines and 507 km of standard gauge lines.

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