Chinese firm wins $12 bn Nigeria railway deal
November 20, 2014, 5:40 am

The $11.97 billion contract is China’s single largest overseas contract project, the CRCC said [Xinhua]

The $11.97 billion contract is China’s single largest overseas contract project, the CRCC said.

The coastal 22-stop railway, which will stretch for 1,402 kilometers, will link Nigeria’s economic capital Lagos in the west with Calabar in the east.

Trains will travel at a top speed of 120 km per hour, according to the CRCC.

China is ready to participate in building Nigeria’s infrastructure, including the coastal railway projects, Chinese Premier Li Keqiang had said in the Nigerian capital Abuja earlier this year.

“Nigeria emphasizes development of railway and other infrastructure while China possesses technical strength and rich experience in this regard,” Li said.

Nigeria currently is China’s third-biggest trading partner in Africa.

In 2013, Sino-African trade reached $210.3 billion with China emerging as the continent’s largest trade partner for five consecutive years.

“It is a mutually beneficial project,” said CRCC chairman Meng Fengchao, adding that the coastal railway project will adopt Chinese technological standards and result in equipment exports worth $4 billion, such as construction machinery, trains and steel products.

“Meanwhile, the project will create up to 200,000 local jobs, directly or indirectly. Up to 30,000 fixed job posts may also be provided when the railway is operational,” Meng said.

China has in recent years stepped up its participation in investment and financing of major projects across the African continent.

Nigeria, alongwith South Africa, are two of the most powerful economies in the continent.

By the end of 2013, China had directly invested over $25 billion in Africa by the end of last year.

Africa, with one billion people and over $2 trillion in combined GDP, saw its economy growing by more than five per cent annually over the past ten years. Of all the ten most rapidly developing economies in the world, six came from Africa.

China has announced it is increasing its loans for African countries by $10 billion, bringing the total to $30 billion, and will also expand the China-Africa development fund by $2 billion to $5 billion.

TBP and Agencies