The Federal Executive Council (FEC), on Thursday, approved an interim agreement for the concession of Nigeria’s East and West Narrow-Gauge Rail to General Electric (GE).
According to an announcement from the presidential villa, the interim concession agreement will allow the consortium immediately commence improvements in the operational capacity of the rail network.
The consortium that the concession has been handed to comprises of General Electric from the United States, Transnet (South Africa) and Sino Hydro from China.
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The government said the concession deal with GE would see investments of over $2 billion in the country’s two-major narrow-gauge railway lines.
The American firm was announced as the preferred concessionaire in May by the Federal Government after it had emerged as the preferred bidder.
“We are giving the narrow-gauge system to GE as a concession. The concession will hold for about 30 years, in which GE will rehabilitate and run it over that duration,” Transportation Minister, Rotimi Amaechi said.
“With the agreement being signed, we expect that they (GE) commence operations immediately. They will operate and repair the narrow gauge.”
It is believed that the concession deal with GE is the first of many to come as part of the< government’s drive to revitalise Nigeria’s ailing infrastructure.
