Chinese Company Wins Bid To Construct $1.85bn Light Rail In Kano

BEVERLY HILLS, August 29, (THEWILL) – China’s state-owned railway construction firm, China Railway Construction Corporation Ltd, has been awarded a $1.85 billion contract to build a light railway line in Kana State, Nigerian.

In a special announcement on Monday, the company said its Directors have received a provisional letter of award from Nigeria saying two of its subsidiaries have been provisionally awarded the light railway project in Kano.

“Project contract amount of approximately $ 1.851 billion, equivalent to approximately RMB 120.3 Billion, accounting for 2% of the Company's 2015 revenue, under the China Accounting Standards,” the announcement read.

The receipt of the contract is valid for three weeks from the day of award, after which “uncertainties” will prevail.

“The contract is for four lines, totalling 74 km (46 miles) and capable of carrying trains travelling at a top speed of 100 km per hour.

“This award is subject to the fulfilment to all conditions spelled out in the letter of intent from the financing bank and the final approval by the presidency of Nigeria.

The company said it expected the first and second phases of construction to each last for two years, but did not give details of when work was expected to start if approved.

THEWILL recalls that Finance Minister, Kemi Adeosun, said earlier this month that 60 billion naira ($180 million) in additional spending would be allocated for capital projects as part of the 2016 budget to boost the economy and is investing heavily in capital projects, building infrastructure, and replacing half-a-century old rail lines, in the country.

She added that Nigeria would tap partnerships with the private sector to boost investment and the government was also in talks with General Electric to develop and operate rail services to improve transport for goods.

Story by David Oputah