We Will No Longer Be Able To Deliver $1.96Billion Eastern Railway in May 2023

We Will No Longer Be Able To Deliver $1.96Billion Eastern Railway in May 2023
We Will No Longer Be Able To Deliver $1.96Billion Eastern Railway in May 2023

The Federal Government on Wednesday said the earlier promise to deliver the $1.96 billion Eastern rail corridor by May 2023 is no longer feasible.

It cited paucity of funding as reason.

Minister of Transportation, Muazu Sambo, said this while responding to media queries at the end of the Federal Executive Council (FEC) meeting.

He said the 85 per cent counterpart funding from the Chinese engineering company was not yet available.

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President Buhari had two years ago performed the groundbreaking of the $1.96 billion rail project.

He had said it would stimulate economic activities in 14 states it covers.

They are Abia, Anambra, Imo, Ebonyi, Enugu, Rivers, Nasarawa, Benue, Plateau, Kaduna, Yobe, Borno, Bauchi and Gombe.

The minister said: “The truth of the matter is that if there was a promise to deliver this line before the end of this administration, this promise is no longer feasible.

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“When the contract was approved, it was approved on the premise that 85 percent will be funded through foreign loan, while 15 per cent will be the counterpart funding for the national budget.

“Since that approval, we have not been able to obtain that 85 per cent foreign loan for this project.

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“We have been funding it through the national budget on the bases of the 15 percent counterpart funding of the Federal Government.

“Therefore, funding has been a major challenge for this project.”

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