Chinese firm wins Nigeria’s $11.97bn railway construction deal

NRC Chairman, Alhaji Bamanga Tukur

A Chinese company, China Railway Construction Corporation, has won a contract worth $11.97bn to construct a 1,402kilometres railway between two Nigerian states, Lagos and Calabar.

Reports according to Xinhua, a Chinese newspaper, on Thursday said the 22-stop railway, which would create up to 200,000 local jobs, is China’s single largest overseas contract project, as confirmed by the construction company.

The announcement of the contract came shortly after Mexico, a North America country, suddenly scrapped a $3.75bn high-speed rail contract with a consortium led by the Chinese firm over transparency concerns.

The Chairman, CRCC, Meng Fengchao, said the deal was a mutually beneficial project, adding that the railway project would adopt Chinese technological standards and result in the export of equipment such as construction machinery, trains and steel products worth $4bn from China.

“The project will create up to 200,000 local jobs, directly or indirectly. Up to 30,000 fixed job posts may also be provided when the railway is operational,” Fengchao said.

Also, the CRCC President, Zhang Zongyan, said the company would undertake further studies on the targeted market in order to allow railway, a green and efficient transportation mode, to play a more significant role in Africa.

According to the company, trains would be able travel at a top speed of 120 km per hour. China is pushing to win railway construction projects around the world as part of plans to export its high-speed technology and lift its manufacturing sector up the value chain.

THEPUNCH.