No loan secured yet for rail projects, says minister

The Federal Government says it is yet to secure the 85 percent foreign loan for both the Kaduna-Kano and Port Harcourt-Maiduguri rail projects.

The government further said it had completely disbursed to the contractor handling the Kaduna-Kano rail line the 15 percent fund as obligated by it.

It also stressed that until the loan is secured, the two projects may have to be funded through the budget.

Minister of Transportation, Mu’azu Sambo said these at the weekend in Abuja.

His words: “The Kaduna-Kano, Port Harcourt-Maiduguri rail projects are ongoing. The challenge we have with these two projects is that we are yet to secure the 85 percent foreign loan component for the two contracts.

“We have been driving these two projects solely through appropriation, which is the 15 percent that Nigeria is supposed to contribute.

“Indeed, I can tell you for sure that concerning the Kaduna-Kano rail, we have paid completely to the contractor the 15 percent obligation of the Federal Government.

“Until we have the 85 percent components, the projects will have to be funded through appropriation.”



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