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Nigeria awards $6.7 billion rail contract to Chinese firm

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A worker adjusts his hard hat at the National Arts Theatre stop of the light rail system under construction in Lagos, Nigeria, May 30, 2014. Started in 2009 to ease traffic, Lagos state government is building a rail system with the China Civil Engineering Construction Corporation. REUTERS/Joe Penney

Nigeria has awarded a $6.68 billion contract to the China Civil Engineering Construction Corporation (CCECC) for work on a major segment of a railway linking the country’s commercial hub Lagos, in the southwest, and Kano in the north, Xinhua reported.

“The signing of the … segment contract agreement today (Tuesday) concludes all outstanding segments of the Lagos-Kano rail line,” the Chinese state news agency quoted Nigeria’s transport ministry as saying. The work is expected to take two or three years.

CCECC, a subsidiary of Chinese state rail builder China Railway Construction Corporation, has been involved in other parts of the Lagos-Kano rail project, which started in 2006 and was broken into segments for implementation.

In 2016, Nigeria awarded it work on a segment between the northern states of Kano and Kaduna with a contract sum of $1.685 billion.

The railway line is also receiving funding from China. In April, China Exim bank approved a $1.231 billion loan for the network’s modernisation programme.

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