According to sources, the tender process for the Lot 2 of Abuja (Nigeria) Light Rail PPP project is expected to be tendered soon.
Peter-Claver Obinna, Group chairman of International Risk Management Group (IRMG), has announced that construction works are set to begin within the next six months. IRMG is handling ongoing review of the feasibility study and conception design for the project.
The Light Rail project would cover a total of 54.1 km passing through Eagle Square to Gudu and down to Nyanya axis, in Abuja. The new line would have about 16 stations. It is expected to convey about 150,000 commuters daily when completed.
The project is expected to be operational by 2020.
Mr. Obinna stated:
"Once the review of the preliminary process and upgrade the existing feasibility studies on the project was concluded, because it was carried out since 2006, and this is 2015, so there is the need to properly evaluate it.
"And there are a lot of encumbrances along the way, which have to be cleared, to pave way for the smooth take off of the rail construction work on Lot 2. So hopefully within the next six months, we should be entering into the construction stage."
The first part of the Abuja light rail project is at 25% completion and it will be financed by China Exim Bank. The project will cost $500m. The facility was obtained on highly favourable concessional terms: 2.5 per cent interest over 20 years with a grace period of seven years.
We have recently reported that the Federal Ministry of Communication Technology of Nigeria had selected Infrastructure Investment Facilitation Company (IIFC) from Bangladesh as the transaction advisor for the Financial Inclusion PPP project.