THE Minister of Transportation, Mr Rotimi Amaechi, on Saturday, said General Electric (GE) was investing $2.7 billion on infrastructure, Operation and Maintenance (O and M) of the entire narrow gauge lines concession.
Amaechi made this known in to the News Agency of Nigeria (NAN) while giving account of his stewardship in the last two years in Lagos.
GE is investing $700 million on infrastructure and 2 billion on O and M.
However, the agreement was concluded on interim trade with GE on November 6, for them to commence work in December.
With the interim trade, Nigeria Railway Corporation (NRC) would still be on the platform until proper negotiation and agreement were concluded by April 2018 when GE will fully take over.
“We are already in conversation with GE. By Monday, we will conclude agreement on the interim trade, which means that they will start working and functioning from December. But NRC will still be on the platform till we conclude the proper negotiation agreement, which will likely be within March and April 2018.
“ Then NRC will be out, and be fully managed by GE. They will work on the infrastructure,
“Two billion dollars for O and M, so their investment is about 2.7 billion dollars for the entire project,” he said.
He, however, said that the narrow gauge rail lines would be managed for the period of 20 to 30 years, adding that Nigerian contractors would be engaged. This, Amaechi said, would create jobs for the youth.
Meanwhile, the minister said that the Federal Government would inaugurate 10 new coaches and two locomotives for the Abuja-Kaduna rail service on December 10.
He recalled that President Muhammadu Buhari had told the National Assembly that the new coaches would arrive in November.
According to him, arrangement has been made to make it feasible.
“The President has already announced to the National Assembly that on the 10th of December, he will inaugurate 10 coaches and two locomotives.
“This means that the 10 coaches and two locomotives must arrive in Abuja for commissioning. One locomotive will be used for daily drop-off at the stations, while the second locomotive will be an express train from Abuja to Kaduna,’’ he said.