Friday, May 14, 2021

GE withdraws from $2.7bn Nigeria railway concession deal


tiamin rice

The Nigerian Railway Corporation, NRC, says General Electric, GE, has withdrawn from the $2.7 billion railway concession deal because it has stopped the transportation section of its business, not due to harsh economic policies.

Fidet Okhiria, the Managing Director, NRC, disclosed this in an interview with the News Agency of Nigeria in Lagos.

He said that Nigerian government fulfilled is part on the concession, noting that GE pulling out is the company’s decision.

“The issue of concession, the funds required was about 2.7 billion dollars and the government did their aspect while the GE came up that they are ready to go into concession.

READ  Amaechi defends self over criticism against siting Transport University in Daura, says ‘I have no regret’
READ  Nigerian gov't takes delivery of 2 standard gauge locomotives

“Which we said okay because we have the system in place, we advertised and other companies bidder and about four companies came up top and GE was considered the best and they were given.

“But during the process of discussion, things happened that GE from their own side withdrew from transportation business, so is not that there was any issue.

“They generally stop the transportation section of the company,’’ he explained.

Okhiria, however, assured that GE’s withdrawal would not stop the concession, as the other three companies have met and Transnet South Africa has been selected to takeover.

READ  NRC introduces another train service for Lagos-Ogun transit

He further said that Transnet was studying the processes and would get back to the government.

Okhiria said that NRC needs more rolling stock that is why they want more partners to join in the concession to improve on the rolling stock.

READ  Train service: People living in Abeokuta, Ibadan can now work in Lagos — NRC

NAN recalls that federal government on May 24, 2017, entered into agreement with General Electric for the narrow gauge railway concession in Nigeria.

GE was to invest $700 dollars’ worth of investment on infrastructure with $2 billion on Operation and Maintenance.

READ  Suspended Lagos mass transit train service resumes Thursday — Official

Daily NAN

Related News



Please enter your comment!
Please enter your name here
READ  NRC reacts to ‘gun attack’ on Abuja-Kaduna train, says kids threw stone at windows

Latest News