As construction work on the 156km Lagos-Ibadan standard gauge rail progresses, Minister of Transportation Rotimi Amaechi is expected to present a request to the Federal Executive Council (FEC) for cost overrun, Daily Trust can report.

The project was awarded at the cost of $1.5bn to China Civil Engineering and Construction Company (CCECC) but there are indications that government would overshoot the budget following variations not included in the original contract details.

Sources told Daily Trust at the weekend that the variations were being finalized by the technical team and various committees to be presented to the minister for onward presentation to President Muhammadu Buhari.

Daily Trust had reported in December last year, when the project had barely progressed, that a cost overrun was inevitable going by submissions of stakeholders in the project.

Apart from the cost of relocating some facilities, especially the Nigerian Army 81 Ordinance Corps in Yaba which is estimated at over N5 billion, there is also the relocation of oil and gas pipelines within the Lagos axis.

Also, the commitment of government to connect the rail line to the country’s premier port in Apapa comes at a huge cost going by recent presentations made to the minister by the contractor and technical consultant.

Also, the Apapa Port rail sidings initially estimated at 2.4km in the project are now to extend to 6.4km for seamless connection of the standard gauge to all port terminals.

All these items are being fine-tuned for presentation to the FEC after going through the Bureau of Public Enterprises (BPE) for requisite clearance, a source said yesterday.

The request may get to the president latest by the end of December, it was learnt.

Amaechi last week led the Project Steering Committee and the CCECC officials to Apapa Port to assess the level of work to be carried out there.

After the inspection visit which had the Managing Director of the Nigerian Railway Corporation (NRC), Engr. Fidet Okhiria and his counterpart in the Nigerian Port Authority (NPA), Hadiza Bala Usman, in attendance, it was discovered that some warehouses owned by terminal operators would be partly demolished to ease the rail connectivity.

The terminals to be mostly affected are the APMT and Eni Consortium terminals.

“Most of these things were not envisaged in the original project but this is not strange in a project of this magnitude and the government is determined to execute things that would stand the test of time,” the source, who pleaded anonymity because he was not authorized to talk to the press, said.

Amaechi had in reaction to the cost overrun said, “What is best is what we will do. We will go back to Mr President for us to get approval so as to get something that will outlast us.”

Also speaking, the NPA MD explained that there are areas government would take over from terminal operators “for overriding public interest.”

However, she assured that necessary compensation would be paid to operators whose structures would go completely or partially.

Usman reiterated that the necessary rehabilitation would be carried out at the key sides where ships usually berthed to increase their weight and capacity to accommodate the standard gauge rail.

She said, “All these aspects need to be computed and the number to be presented to the Hon. Minister and in turn he would make the necessary request for approval to the Federal Government.”

Source: https://www.dailytrust.com.ng/1-5bn-lagos-ibadan-fast-rail-fec-gets-cost-overrun-request-from-amaechi.html

This APC drama am getting tired of it everyday....

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Fraud

"Apart from the cost of relocating some facilities, especially the Nigerian Army 81 Ordinance Corps in Yaba which is estimated at over N5 billion, there is also the relocation of oil and gas pipelines within the Lagos axis."

- N5bln

To relocate old artilleries, operational vehicles and bungalows?

Scammers

Even though I comment and insult Buhari it will not change anything so let me just stay mute

At least they are doing something

Hahaaaa

ehnehn...... scam everywhere

How much more will APC continue to spend on a project they won't finish before the expiration of their tenure

Don't you guys think that price is a bit too steep for that project?

1.5 billion dollar, not even on speed train..well I comment my reserve

check my siggy, get your electronics, SMART TVs, air conditioners and sound bars at affordable rate,payment on delivery, BUY4ME services available too with POD option.

if they keep asking what will the Yoruba's benefit from having a VP from our region I gladly point to this , whether they increase its funding or not, Dubai inner city metro of just 74km cost $4.2bn, compared to this linking 3 capital city in the southwest. By the time dangote biggest refinery in west Africa commences operation and starts delivering power to our national grid, and this rail start lifting passengers, our noisy envious neighbors would have something to wail about apart from marginalisation

Mono-rail loading

Nawa ooo , this people Sha ,,, wetin gan

iamprofralph:
How much more will APC continue to spend on a project they won't finish before the expiration of their tenure

Look at them. No wonder Jogogoro never completed any project.

election project... if u know u know

5 billion naira for relocation.... Thieves
Ameachi big thief.

Las Las APC na major SCAM.
Oyibo say that "no foreign investor should invest in Nigeria, that Buhari has no regard for the rule of law and that corruption has eaten deep into this administration".

Some zombies this morning don't have what to eat, see how your fellow man you support, praise is about to pocket billions.
Within the next 5 months mighty Thunderbolt won't disappoint. Both big and small will go down.

About the same amount dansuki was busy sharing.This dansuki guy and his generation will never know peace except he foots the entire bill for this project.

#5 billion for logistics to relocate affected companies? Stealing for 2019 is still ongoing.

Say what you will about Bubu's government but I maintain that his tenure is the first to give us a glimpse of what good governance is about. He has his failings but at the end of the day, amongst the other presidential aspirants and their respective platforms, I maintain that he's still our best chance. Atiku is out of the question. That man will never preside over this nation.

The infrastructural sector received a new lease of life under this administration.

All of you barking upandan, did you bother to ask what PDP achieved in 16 years of oil boon?

Of course it doesn't matter because your support of Atiku wasn't born out of patriotism but because of deep-lying hatred for Bubu.

Reality check: your hatred didn't matter in 2015 and it won't matter in 2019.

I see some Igbo pigs filled with hatred commenting on the thread already . They’ve hijacked the front page to spew their nonsense .
They’re not happy the rail is in the west .
Fools

This is laudable... Let's just do it once and for all.

Brunosamel:
This APC drama am getting tired of it everyday....

You are getting tired of their different ways of stealing your money and depriving Nigerians of jobs, education, power, roads, water, security etc?
Na wah for you oh. Chai, na who do you this thing

Kenekingisback:
Fraud

"Apart from the cost of relocating some facilities, especially the Nigerian Army 81 Ordinance Corps in Yaba which is estimated at over N5 billion, there is also the relocation of oil and gas pipelines within the Lagos axis."

- N5bln

To relocate old artilleries, operational vehicles and bungalows?

Hahaha, I agree, that 5billion naira has been padded with egunje for Amaechi, Buhari, and different political contractors both in the APC led federal criminals and PDP pot bellied thieves, useless government feeding fat while the masses are suffering and dying daily

Febuhari 2019 loading

Chibuike

But why are this people doing like this?
Can Nigeria matter be a curse or something...
Cos I no just understand.