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Funding is a Major Challenge in Rail Infrastructure Development – Amaechi.

amaechi
amaechi

Rotimi Amaechi, Minister of Transportation, said on Friday in Kano that the federal government has blamed delays in rail infrastructure and modernization projects on a lack of funding caused by the global economic downturn while inspecting ongoing work on the Kaduna/Kano rail route.

Amaechi arrived at the Zawacikin railway mega station at exactly 11.26 a.m., accompanied by the Minister of State for Labour and Employment, Festus Keyamo, and immediately began inspection after a brief conversation with representatives of the China Civil Engineering Construction Corporation, CCECC.

Amaechi expressed satisfaction with the quality of work completed thus far and promised that the project would be completed and ready for commercial operation by May 2023.

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“I have never denied that we are facing financial difficulties as a result of the economic downturn,” he said.

The Chinese are no longer funding projects in the same way they used to. We have yet to finalize loans for this project, so we are funding it from the budget.”

We are putting pressure on all of the institutions that used to provide us with funds.

And hopefully, we will be able to raise enough funds to complete this project by May 2023.”

“In terms of quality, they are not doing badly; I’m not sure if I should attribute that to the TEAM inspection, but you must also credit CCECC; however, what it means is that they should not sleep.”

That is why we insist on TEAM being present at all meetings. TEAM, not the Minister, has the final say.

“We insist that the Chinese bring enough equipment because what happened in Lagos/Ibadan was that the equipment broke down and they couldn’t place orders for new ones, but for this one, they should buy all the equipment that they need so that as it breaks down, they replace.”

In terms of the economic significance of the 203-kilometer rail line, the Minister stated that when completed, “the route will be used to convey both passengers and cargos.” Kano and Lagos are two of the country’s most important economic hubs.

Kano’s economic activities can be conveyed to Lagos, and those who produce in Lagos can have their products conveyed to Kano. This will generate jobs, and the cost of land in Zawacikin will never be the same.”

Having said that, Amaechi praised President Muhamadu Buhari for encouraging Nigerians to participate in the country’s infrastructure development project.

“The government encourages not only the use of local materials but also the transfer of such jobs to Nigerians.”

It is not only about the economic benefits; it is also not good for the Chinese to come here and borrow $2 billion, then take the entire profit and return to their home country. “They should also spend some of their time in the country,” he added.

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