The Federal Government is considering giving out railway facilities to private sector operators on a concession arrangement, Vice-President Namadi Sambo has said.
Sambo, who said this on Thursday in Abuja during the commencement of the laying of tracks on the Abuja (Idu)-Kaduna rail line, said the concession of the facilities might be done on completion of the different projects in the railway sector.
He said, “This administration is considering the concession of railway facilities to private operators on completion, and it is the hope of this government that Nigerian railway operations will eventually transform to a world class status.
“The Federal Government is determined and will continue to provide the necessary enabling environment through the enactment of relevant legislation for public-private partnership in the provision and operation of the rail corridors.
“We may in the process negotiate and offer opportunities for Foreign Direct Investment in this very important sector.”
The vice-president also said the government had successfully secured a concessionary loan of $500m from the Chinese government to part finance the Abuja (Idu)-Kaduna railway project.
“As part of his engagement during the upcoming proposed state visit to China later this month, Mr. President is expected to discuss with the Chinese government possible sourcing of concessionary loans to guarantee the funding and the execution of the project,” he added.
Sambo said the Federal Government signed the contract for the Abuja (Idu)-Kaduna railway modernisation project in December 2010, adding that the project would cost $874,308,704, with a completion period of 36 months.
He said the segmentation of the Lagos-Kano railway modernisation project was based on the recommendation of a presidential committee, which divided it into six segments, with the Abuja (Idu)-Kaduna project picked as Addendum 1.
Earlier in his address, the Minister of Transport, Mr. Idris Umar, stated that the track laying underscored the determination of the Federal Government to deliver the project on schedule.
He said, “The commitment of the Federal Government towards providing the country with an adequate and sustainable railway network led to the articulation of a 25-year strategic rail vision for the country.
“The vision is designed to be implemented in three phases involving system transition, where all the existing narrow gauge lines will be rehabilitated; system modernisation, in which new standard gauge rail lines will be constructed; and system stabilisation, where huge investments in operations and maintenance will be made as well as the development of local capacities.”