In a surprising move, the Federal Government has approved N27 billion for the rehabilitation and purchase of railway facilities including new locomotive engines.
Only last year, the $8.3 billion railway modernisation programme awarded to China Civil Engineering Construction Corporation (CCECC) under the administration of President Olusegun Obasanjo was suspended by President Umaru Musa Yar'Adua.
The government's decision was made known by Transport Minister, Mr. Ibrahim Bio, during a ministerial briefing on Thursday in Abuja.
Government opted for a single standard gauge rail line, following a review of the suspended railway modernisation programme initiated by the Obasanjo government, he revealed.
About N14.3 billion was allocated for the procurement of 25 locomotives engines. N12.8 billion was allotted to facilities and rehabilitation.
The News Agency of Nigeria (NAN) reports that Bio disclosed that the procurement of workshop tools and equipment to re-rail tracks would gulp N400 million, while the rehabilitation of marshalling yards and signals will cost N2 billion.
He said that N620 million will be used to rehabilitate 120 coaches and wagons while N1.3 billion would go to the purchase of three rail cranes.
According to the minister, "the completion of Ajaokuta to Warri line will gulp N6 billion. Construction of station signals and communications for Ajaokuta – Itakpe – Warri rail line will cost N125 million.’’
He said that if there is adequate security in the Niger Delta, 30 per cent of the project is expected to be completed in December.
The plan is to implement the project in stages and on stand-alone basis, bearing in mind availability of funds, he noted.
The first stage will cover Abuja to Kaduna, a distance of 187 kilometres and Lagos to Ibadan, 187 kilometres and the second stage, Minna to Abuja, Minna to Kano and Ibadan to Ilorin.
He disclosed that "the N6 billion owed to Julius Berger has now been paid to enable it to resume and complete the project, which covers a distance of 22 kilometres to the Delta Steel Jetty."
“Julius Berger is currently undertaking aerial survey and mapping of the track, while railway engineers have completed the foot patrol, preparatory to the resumption of work,” Bio added.
The government should have no business in the transport sector, he stated. However, it expects to partner the private sector including individuals and corporate organisations in these projects, he stated.
The deadline for the completion of these projects is June 2010, he said.
Bio stated that President Yar'Adua had directed that the $500 million loan already secured for the project should be accessed. He said the government decided to urgently restore the north/south line to actualise the resumption of train services early next year.

As said in 2009

Change is here. Vote those who support rail transport, not those who cancel them!

Goodluck Nigerians.