The minister of transportation, Mr. Mua’zu Sambo, attributed the stoppage of work on the Abuja-Kano and Port-Harcourt Maiduguri rail projects to the delay in securing 85 percent foreign loan for the construction.
Sambo who stated this while briefing journalists in Abuja yesterday said the ongoing projects are solely dependent on the appropriation of funds.
“The Abuja-Kano and Port-Harcourt Maiduguri rail projects are ongoing but there is a challenge of the 85 per cent foreign loan yet to be secured.
“We have been driving these two projects solely through appropriation, which is part of the 15 per cent which Nigeria is supposed to contribute.
“Indeed I can tell you for sure that with respect to the Kaduna-Kano rail we have paid completely to the contractor the 15 per cent obligation of the federal government.
“Until we have the 85 percent component, the project will have to be continually funded through the appropriation,” he said.
He said the 85 percent loan meant for the rail project was expected to be secured from Chinese financiers.
