President Muhammadu Buhari has approved the payment of 123billion Naira as counterpart fund to the Chinese Government to execute Ibadan to Kano rail project, this was disclosed by the Minister of Transportation, Mr. Rotimi Amaechi, said work may commence on the project by the end of August.
The project, which will be co-funded by the Chinese government would cost $5.3bn, and it will be handled by the China Civil Engineering and Construction Corporation (CCECC).
Amaechi, disclosed this during the interview on Channels TV on the Democracy Day. He, commended the Chinese Government which he said had been very helpful in funding the railway modernization projects of the Federal Government.
He also disclosed that the Federal Executive Council (FEC) had approved the opening of an account where some of the profits being generated from the standard gauge train services would be secured for repayment of the fund to the Chinese government.
He, however said, Nigeria Government is now generating N110million monthly as profit in Abuja-Kaduna alone, added that by the time the Ibadan to Kano train service starts in addition to cargo operations, more will be generated and it will help in quick repayment of the loan.