The Federal Executive Council (FEC) has approved the ratification of the award of a contract worth $11,174,769,721.74 for the implementation of the Lagos-Calabar coastal standard gauge railway project.
The council in its meeting presided over by Vice President Yemi Osinbajo at the presidential villa, Abuja on Wednesday also approved the acquisition of a 20% minority stake worth $2.76 billion by the federal government in Dangote Refinery.
Similarly, it gave the go-ahead for the award of contracts for the rehabilitation of Warri and Kaduna refineries at the combined cost of $1.484 billion.
Minister of Information and Culture, Lal Mohammed; Minister of State for Petroleum Resources, Timipre Sylva; Minister of State for Education, Chukwuemeka Nwajiuba and the Minister of Power, Sale Mamman briefed correspondents at the end of the meeting.
Speaking on the memo presented to FEC by the Minister of Transportation, Rotimi Amaechi, who was absent at the briefing, Lai Mohammed explained the approvals for rail projects.
He said “The first one actually has to do with the Kano-Jibia rail and then the other one has to do with the Port Harcourt-Maiduguri route.
“Actually, what was approved there today was funding to ensure that work starts immediately on those two routes.
“Another memo that was approved today was the ratification of the President’s approval for the award of the contract for the Lagos-Calabar coastal standard gauge rail.
“You’ll remember that this is a very old project, which we inherited. Under the former administration, approval was given, but nothing was done, but today, the council has given the approval to commence the Lagos-Calabar coastal route.
“This particular route is very important because, after the Lagos-Kano route, this Lagos-Calabar coastal route actually will link all the coastal cities in the country.
“The proposed route alignment is to go from Lagos to Shagamu, Shagamu to Ijebu-Ode, Ijebu-Ode to Ore, Ore to Benin City, Benin to Sapele, Sapele to Warri, Warri to Yenagoa, Yenagoa to Port Harcourt, Port Harcourt to Aba, Aba to Uyo, Uyo to Calabar, Calabar to Akamkpa to Ikom, to Obudu Ranch, with a branch line from Benin City to Asaba, Onitsha Bridge and then Port Harcourt to Onne Deep Seaport.
“This particular project is very important, especially for our coastal economy.”
“The cost of the project is $11,174,769,721.74 and we have six years for the completion of this project.”