China Railway Construction Corporation says it has won a $1.851 billion contract to construct the Kano city light rail.
In a special announcement in Monday, the company said its directors had received a provisional letter of award from Nigeria.
The rail, with a total length of 74.3 kilometres, is expected to travel at a speed of 100 kilometres per hour.
In context, 100 kilometres per hour is as fast as moving from Lagos to Ibadan in 72 minutes.
The first phase of the project construction is billed to take two years, while the second phase of the four-line rail is expected to take another two years.
“Project contract amount of approximately $ 1.851 billion, equivalent to approximately RMB 120.3 Billion, accounting for 2% of the Company’s 2015 revenue, under the China Accounting Standards,” the announcement read.
The receipt of the contract is valid for three weeks from the day of award, after which “uncertainties” will prevail.
Nigeria is investing heavily in capital projects, building infrastructure, and replacing half-a-century old rail lines, in the country.
With over N1 trillion budgeted for capital expenditure in the 2016 appropriation act, Nigeria is expected to invest the highest amount of money in capex in its 56-year history.
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