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August 30, 2016

China Railway Construction wins $1.85bn deal for Kano city light rail in Nigeria

China Railway Construction has provisionally secured a $1.85bn contract to build a light rail line in Kano State, Nigeria.

China Railway Construction has provisionally secured a $1.85bn contract to build a light rail line in Kano State, Nigeria.

Awarded by Kano State Ministry of Works, Housing & Transport, the deal will see China Railway Construction building a total track length of 74.3km.

Once complete, the four-line track will be capable of carrying trains travelling at speeds of 100kmph.

"Once complete, the four-line track will be capable of carrying trains travelling at speeds of 100kmph."

The consortium comprises China Railway 18th Bureau Group and China Railway Construction Electrification Bureau Group, which are subsidiaries of China Railway Construction.

In a statement China Railway Construction said: “Project contract amount of approximately $1.851bn, equivalent to approximately RMB120.3bn, accounting for 2% of the company’s 2015 revenue, under the China Accounting Standards.”

The company said construction of the first phase is expected to take two years, while the second phase would require a further 24 months.

Subject to meeting all terms in the letter of intent, the deal still requires final approval from the President of Nigeria.

Nigeria is making investments in capital projects and infrastructure, as well as replacing the country’s ageing rail lines. Under the 2016 Appropriation Act, the country has allocated more than N1tn in capital expenditure, reported The Cable. 

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