Pat Stevens/
The Federal Government has awarded a $3.9 billion contract to China Railway Construction Corporation (CRCC) to construct a new seaport in Warri, Delta State.
NewsmakersNG learnt that the contract also includes the extension of the Itakpe-Warri rail line at both ends.
On Itakpe end, the rail will be extended to Abuja, through Baro Port, with spur to Lokoja, while on the Warri end, the line will be extended to the new Warri Port.
The contract was approved by the Federal Executive Council (FEC) in May.
The contract, NewsmakersNG further learnt, will be financed through a Public-Private-Partnership (PPP) arrangement to which the Nigerian government and CRCC will contribute 15 percent and 10 percent equities respectively.
The balance of 75 percent is to be borrowed from China Export-Import (Exim) Bank, using an SPV.
The contract stipulates that CRCC will operate both rail line and seaport under a 30-year concession agreement, to recover and repay the SPV debt.
According to the Ministry of Transportation, the Federal Government will guarantee the 75 percent loan and the Sovereign Guarantee will be backstopped by a Performance Bond from CRCC.
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