China Railway Construction Corp. Ltd. (CRCC) a Chinese state-owned company has declared that its consortium has won a tram construction contract worth about $1.85 billion in Nigeria.
CRCC has historically sought railway construction contracts in other countries especially Nigeria, with the company reportedly signing a $11.97 billion contract for railway construction linking Lagos and Calabar in the east in 2014. The railway was supposedly 1,402km long.
However, CRCC has had its own share of controversies as Mexico cancelled a $3.75 billion bullet train deal only days after it was signed with a Chinese-led consortium headed by CRCC reportedly due to concerns about transparency.
The company said its directors had received a provisional letter of award from Nigeria.
The rail, with a total length of 74.3 kilometres, is expected to travel at a speed of 100 kilometres per hour.
In context, 100 kilometres per hour is as fast as moving from Lagos to Ibadan in 72 minutes.
The first phase of the project construction is billed to take two years, while the second phase of the four-line rail is expected to take another two years.
“Project contract amount of approximately $ 1.851 billion, equivalent to approximately RMB 120.3 Billion, accounting for 2% of the Company’s 2015 revenue, under the China Accounting Standards,” the announcement read.
The receipt of the contract is valid for three weeks from the day of award, after which “uncertainties” will prevail.
Nigeria is investing heavily in capital projects, building infrastructure, and replacing half-a-century old rail lines, in the country.