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HomeTop NewsNigeria revises cost of Kano-Maradi rail up to $973 mln from $22.8...

Nigeria revises cost of Kano-Maradi rail up to $973 mln from $22.8 mln, to take loans from new Chinese bank

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Nigeria’s Senate has approved China Development Bank as the new financier for the country’s Kaduna-to-Kano rail project at a revised cost of $973 million after another Chinese lender withdrew from the project in 2020, lawmakers said on Tuesday.

Parliament had in 2020 approved China’s Exim Bank as financier for the rail project at a cost of $22.8 million, before the bank withdrew from it.

Nigeria’s lower house of parliament has also approved the new financier, which will grant a 15-year loan to the rail project at an interest rate of 2.7 percent.

READ ALSO: Lagos-Ibadan Expressway to ready April 30, 2nd Niger Bridge May 15, says Fashola

“Rescind its decision on the financier and harmonized terms and approve the change of Financier from China Exim Bank to China Development Bank; and Approve relevant conditions provided in the harmonized term sheet listed below:

“Segment Kaduna-Zarai-Kano Financier China Development Bank Type of Loan Commercial Loan Maturity 15 Years Currency Euro Interest Rate 2.7 percent + 6 months Euribor Commitment Fee 0.4 percent Upfront Fee 0.5 percent,” according to a statement on the Senate Twitter handle on Tuesday.

On January 28, Nigeria signed a Memorandum of Understanding (MoU) with the Republic of Niger on the Kano-Maradi rail line construction.

The MoU was signed by the Minister of Transportation, Mu’azu Jaji Sambo, and the Minister of Transportation of the Republic of Niger, Alma Oumarou, who represented his country, in Abuja accentuate the importance of the rail constructions.

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