The Minister of Transportation, Rotimi Amaechi, has said the Federal Government borrowed about $2.5 billion for the construction of a railway linking Lagos and Ibadan.
Amaechi, who stated this in an interview on Channels Television’s Newsnight on Monday night, said: “If you look at the whole total cost, it will be $2.5 to $2.6 billion that we have borrowed from China Exim Bank.’’
He explained that the Federal Government’s decision to extend the rail line to the nation’s seaports was for the economic benefit associated with it.
“But at the end of the day, the project is costing about $2 billion. The government is coughing out more than just $200 million. We are bringing out about $700 million because we have to extend to the seaport in Apapa which was not part of the original design.
“So we had to take about 45 kilometres rail from Ebute-Metta into Apapa seaport. Everything together is about $2 billion. There is an additional one they are going to bring to connect Tincan Island Seaport to Apapa, that will be some extra cost which we have to borrow from them.
“They also lent us about $1.4 billion for the Lagos-Ibadan while the Federal Government had to cough out about $200 million to make it $1.6 billion,’’ he added.