FG, GE Partner On Lagos-Kano Rail Commercialisation Project | Independent Newspapers Limited
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FG, GE Partner On Lagos-Kano Rail Commercialisation Project

rail, amaechi
Posted: May 23, 2016 at 4:32 pm   /   by   /   comments (0)
…Seeks $166bn In 5 yrs To Meet Energy, Transport Infrastructure Needs 
The Federal Government on Monday disclosed that it has concluded arrangements with General Electric (GE) to commercialise Lagos-Kano railway project.
This is just as it said it would require $166 billion over the next five years to meet the energy and transport infrastructure needs of the country.
Rotimi Amaechi, Minister of Transport, who gave the hint at a public hearing on Nigerian Railway Authority bill and National Transport Commission bill, revealed that efforts were in top gear to revisit previous privatisation of railway, ports and transport sectors of the economy to attract private sector funding.
Amaechi said that besides privatisation, the Federal Government also realised a monumental infrastructure deficit, which as at 2015 stood at over $3.05 trillion in 30 years or $166 billion in five years with energy and transport infrastructure taking more than 50 per cent of the need.
The minister explained that transport infrastructure alone would gulp $50.9 billion in five years to cover the current gap in the sector, an average of $10.2 billion per year.
At present, the ratio of funding in the sector between the public and private is 9:1 which constitutes a major disincentive to private sector participation in the industry.
The minister said it was imperative to intimate stakeholders that full government ownership and management of the agencies had inherent restrictions for third party funding, undue government interferences; burdensome bureaucratic structures and over-bloated work force amongst others.
He contended that privatisation of railway would conflict with public interest, adding that governments all over the world have realised that they are not best suited in ownership and management of businesses and as such considered it imperative to shift from purely government to public private partnership (PPP).