Ogun State signs $3b contract with Chinese construction firm for light rail development
The OGUN State Government has signed a contract contract with a Chinese company, China Civil Engineering Construction Company (CCECC) for the construction intra and inter-city light rail projects in the state.
The projects valued at $3 billion is expected to be completed in three years.
The agreement signing ceremony held inside the executive chambers of the Governor's Office at Oke Mosan, Abeokuta, on Monday.
Governor Ibikunle Amosun in his remarks said that the light rail projects, which would be a fast one, would reduce the pressure on the highways in the state.
According to him, the rail networks would begin with intra-state and would later be linked with neighbouring states.
The governor explained that the Chinese contractors would source for funds needed for the project estimated at $3 billion.
The Consul General of the Chinese Embassy in Lagos, Liu Kan, expressed happiness over his country’s involvement in the project.
He said that China was partnering with Nigeria to improve the nation by developing all sectors of her economy.
The Chairman of CCECC, Mr. Cao Baogang, assured that the company would offer a hi-tec rail system that would enhance the economy of the state, adding that the project would be completed in three years.
He assured that his company would source funds for the project from china. But Governor Amosun informed the contractors that at least local contractors in the state would supply 10 percent of the materials needed for the project.
He explained that the project would enhance technology transfer and engender capacity building in the state.
The governor also promised that his government would soon commence the construction of rural roads and other projects in the state.
Amosun added that ongoing road projects would soon be completed, just as the governor argued that the Lagos/Ibadan Expressway should be a 12-lane road considering the quantum of traffic on the road.
Amosun further observed that the rail project would boost agriculture in the state, particularly transportation of farm produce from the rural to the urban centres.
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