THE Federal Government has signed a memorandum of understanding (MOU) with China Civil Engineering Construction Company (CCECC) for the construction of Lagos-Calabar rail project.
Minister of Transport, Rotimi Amechi, who signed the agreement on Friday, in Abuja, on behalf of the Federal Government said, the first segment of the project is from Calabar to Port Harcourt and it will be completed in two years.
Amechi stated that, the second segment of the rail project is from Lagos to Ibadan and the project will also be completed in two years.
According to the Minister, “the contract was awarded by the Goodluck Jonathan administration for $11.974 billion, however the present administration reviewed the contract and the price was reduced to $11.174 billion” noted Amechi.
He promised that, Federal Government will fulfill its own side of the agreement and make available its counterpart funds timely.
Responding, the president of CCECC, Mr. Cao Baogang said, the project will impact positively in the agricultural life of the country.
He revealed that, over 500 jobs will be created when the project is completed and Baogang assured that, the company will meet up with the time frame of the contract.