Senate approves $1.806b Chinese loan for rail projects

 

   The Senate yesterday approved part of the 2016-2018 External Borrowing Plan pertaining to the Lagos, Kano railway modernisation project (Lagos-Ibadan segment double track).


   The upper chamber also endorsed the World Bank-supported reconstruction and rehabilitation of the Northeast at $1.806 billion. This followed the consideration of the report of the Senate Committee on Local and Foreign Debts on the proposed Federal Government 2016-2018 External Borrowing (Rolling) Plan presented by the Chairman of the Committee, Senator Shehu Sani.

   Sani, in his report, noted that the committee resolved to consider the project due to its importance and urgency to fast track the development of critical infrastructure. The committee received briefs from Ministers of Transportation and Finance, Director General of the Debt Management Office (DMO), Chairman, Fiscal Responsibility Commission and Managing Director, Nigeria Railway Corporation.

   The projects to be financed by the China Exim Bank include Lagos-Kano Railway Modernisation (Lagos-Ibadan segment);  Lagos-Kano Railway modernisation project (Kano-Kaduna segment) and Coastal Railway  (Lagos-Calabar segment). On the World Bank-supported projects, Sani listed polio eradication and routine immunisation, Community and Social Development project and Nigeria States Health programme investment.

   Apart from approving the loan request, the committee’s recommendations adopted by the Senate included that the: immediate negotiation for the Eastern corridor (Port Harcourt-Maiduguri) and same submitted for approval by the National Assembly; and that the committee “do recommend for approval by the Senate the remaining segments of the Rail modernisation project as soon as these are approved by the Board of China-Exim Bank, namely (Lagos-Calabar segment) and the Port Harcourt Maiduguri line (the Eastern corridor rail project)”.

   The committee also recommended that the Senate “do emphasize effective oversight by relevant committees on the implementation of all the projects for which the loans is being approved.” It said that the projects, when fully implemented were sure to stimulate economic development and create both direct and indirect jobs for Nigerians, particularly youth.