News

Oyo signs MoU with Chinese firm for construction of 38km light rail

The Oyo State Government has signed a Public Private Partnership agreement with China Civil Engineering Construction Company (CCECC) for the construction of a light rail system in Ibadan

The 38km rail project will connect Toll-Gate/Sanyo axis of the city to Queen Elizabeth Way, Mokola and terminate at Ojoo.

At the signing ceremony held on Thursday at the Executive Council Chamber of the Governor’s office, the state government explained that the project will reduce the perennial traffic congestion across the state and also boost commercial activities in the state.

CCECC is expected to source for 85 percent of the funds needed while the state government will provide 15 percent.

The project is expected to be completed in 12 months but accordimg to the agreement, start date begins the day the company secures the loan needed to execute the project.

“We are optimistic that in another four to five months, the company should be able to access the loan facility”, Commissioner for Works and Transport, Mr. Wasiu Dauda, told newsmen. “Part of the requirements to getting the loan is the signing of the agreement between the company and the state government”

According to the Commissioner, “the state government is embarking on the project because if you get to some areas, the traffic congestion is beyond imagination but in the case for instance if someone is coming from Lagos and going to Ojoo, he would only alight at the Toll Gate. He needs not board another cab, but just enter into the lightrail to save time and resources.

The Executive Director CCECC, Jack Lyao, who led top officials of the company to the singing ceremony said the company is eager to deliver an excellent project.

He said: “You know CCEC is a very big company, especially in Nigerian and we major in railways, roads, buildings and bridges and even in railways we have done so many of it in places like Abuja, Lagos and others. We are eager to hand over a very profitable project for Oyo state. Once we receive the payment, we will set the commencement date and after then, 12 months to deliver the project”.

 

Comments
To Top