Amaechi Signs MoU on $11.117bn Lagos-Calabar Railway Project to be Completed in 2 Years … Photos

Outspoken Minister of Transportation, Chibuike Rotimi Amaechi has signed an MoU on the $11.117 billion Lagos-Calabar railway project expected to be completed in 2 years.


Rotimi Amaechi and the Chinese firm during the signing of the MoU

The President Muhammadu Buhari-led federal government on Friday, signed the Memorandum of Understanding (MoU) on the lagos-Ibadan and Calabar-Port Harcourt railway projects with the China Civil and Engineering Construction Company (CCECC) for $11.117 billion, saving $800 million from the initial estimated value of $11.917 billion.

The Minister of Transportation, Rotimi Amaechi, signed the agreement on behalf of the federal government, while the President of CCECC, Cao Baogang, signed for the company in Abuja on Friday.

At the signing ceremony in Abuja, Amaechi said the contract which was initially negotiated by the Goodluck Jonathan administration, will be completed in two years, and expressed optimism that federal government will meet its counterpart funding of 15%, the China EXIM bank will defray the remaining 85% of the project.

Amaechi said, “we were able to save 800 million dollars from the initial sum of the project which will be delivered in the next two years. This contract was awarded by the President Goodluck Jonathan regime at 11.917 billion dollars and when we took over at Ministry of Transportation we negotiated with CCECC and succeeded in reducing the contract sum from 11.917 billion dollars to 11.117 billion dollars.

“We are able to save 800 million dollars after negotiation with CCECC and that has to do with the fact that CCECC said prices of commodities like steel and other things have come down. “So, our gathering is to sign same contract but with different price and to make it legal from the initial price to the negotiated price.

“As soon as we conclude discussion with China Exim Bank, they will commence construction of the first segment,’’ he said adding that the first segment would be from Calabar, Uyo, Aba and Port Harcourt and it would include all the seaports on the route.

“The entire contract covers Calabar, Uyo, Aba, Port Harcourt, Yenagoa, Otuoke, Ughelli, Warri, Sapele, Benin, Agbor, Asaba, Onitsha, Ore, Ijebu Ode, Sagamu and Lagos. “My expectation is that the project can be completed in two years since funding won’t be a problem,’’ the minister said.

On his part, the CCECC boss, Baogang, said that the railway would contribute immensely to the economic development of the country and open doors of employment, adding that the company was ready to train Nigerians through building of factories, especially those in the grassroots.

“I know that railway contributes immensely to the economic development in Nigeria and it is very important.

“Railway will open doors for local people and I am sure that we will create more than 400 jobs with this project.

“We will execute this project with quality materials and with high speed and we hope to deliver in two years as expected by the minister,” he said.



  1. What about the Lagos – Port Harcourt sector of the Lagos – Calabar rail project?
    Typically, Amaechi wants to play politics with it like he did with the Maritime University.

  2. #JustNegodi the ongoing project ECOWAS gave to this CCECC from Lagos to where ever has taking them 5 years now and they have not still passed lagos not to talk of getting to seme. I wonder how many decades it will take them to complete all the projects. Come to alakija festac and see how they are toying with the project with slow motion….

    • The rail project, you are talking about is a Lagos state project by LAMATA sponsored by World Bank. From Okokomaiko to CMS. That project has no business with ECOWAS

  3. Please, let the Federal Government ensure, no community along the line built shrines, ponds, workshops, emergences houses on the way to obstruct construction work. Let no community issues frustrate the work. You either get employed or not, let all ensure the train service which will reduce cost of transport and easy movement of people. Community Chairmen and Youth Leaders must be held criminally liable for any disruption or attacks on construction workers. Then, the work will move fast as plan. Without such proper orientation, some will use their community offices which are larger than life in their localities extended to this project, and we shall not for the first time enjoy rail services. Please, remember what happened to the Benin-Warri Express frustrated from the Benin Boundary to Elume after Sapele in Delta State, and the Warri -PHC Express from Agbaru down to near Patani where Urhobo people along the surveyed line of the road, did all sorts of things to attract compensation. The Contractor, frustrated, left that area and started clearing after Ughelli. It took several interventions to remove those encroachers. Someone in fact built a foundation, another placed an old Beetle Car and wrote Mechanic Workshop on it near Betta Glass Company. These acts must be discouraged and persons involved be prosecuted to sabotage to ensure, no one try it along the rail tract. Imagine, at Agbaro, by the river, a big Shrine with red Flag appeared over night when Setraco started the road works from the DSC Roundabout in Warri. Those who are familiar with these areas will confirm my story. All these delay work of the construction company and increase costs. Gen. Abacha in a television broadcast openly accused the Community Relations people and the Communities along the axis I mentioned early to have frustrated the completion of the Benin-Warri Express Road. That money meant for construction has been used up in paying endless shrines and ponds deliberately along the road, and there is no money to continue with the project. Roads contracted the same time with Benin – Warri Express where completed between 1993 and 1995 in the North and South West of the Country. Whereas, Community disturbances led to the abandonment of this road and was completed in 2007, that is 12years after and on account of Federal Government bowing to agitations of Niger Delta Militants. If Amaechi wishes the CCECC to complete this rail line as planned. Dubious communities agitations must be checked pronto.

  4. Have ECOWAS paid nope they have not will d company use their teeth to complete d project abeg talk better thing and as for the other guy Lagos is d final destination

  5. Otuoke? I didn’t know that place still existed. Thank God GEJ had the guts/wisdom to include his village in the original plan.

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