Thread by @toluogunlesi

This week @NigeriaGov awarded a $3.9bn contract to China Railway Construction Corp(CRCC) to

1. Construct a new seaport in Warri

2. Extend #ItakpeWarriRail Line at both ends:

- On Itakpe end, ext to Abuja, through Baro, with spur to Lokoja

- On Warri end, ext to new Warri Port

The contract was approved by the Federal Executive Council (FEC) in May 2019: google.com/amp/s/punchng.…

Financing arrangement: PPP

@NigeriaGov will contribute 15%

CRCC contribution: 10%

Balance of 75% to be borrowed from China Export-Import (Exim) Bank, using an SPV

CRCC will operate both rail line and port under a 30-year concession agreement, to recover and repay the SPV debt

According to the Ministry of Transport, @NigeriaGov will guarantee the 75% loan to be taken to be taken from China Exim Bank, and this Sovereign Guarantee will be backstopped by a Performance Bond from CRCC.

All details above from @NigeriaGov Ministry of Transport.

I’ve tried to do some finding out to answer the question: why do we need a new port at Warri? Probably not an exhaustive answer but let me try:

Nigeria needs new Ports definitely; with capacity to handle projected future cargo volumes. Same reason why we need new airports in Lagos, Abuja, Kano etc.

And why Warri: Well, Warri already connected to a existing STANDARD gauge rail line that runs 300+ km across Nigeria.

What we have learnt from Lagos is that modern Ports need Rail links. (that’s why the #LagosIbadanRail project is linking Apapa Port). So, Warri clearly has an advantage in that it already has a functioning standard gauge rail link, which just needs to be extended.

As you all know I have traveled on the existing portion of #ItakpeWarriRail line twice. All ~320km between Warri & Itakpe. The extensions to Abuja and Lokoja will open up what is a vital economic corridor - Agriculture and Mining especially. Edo & Kogi will be big beneficiaries!

I think it’s accurate to say Kogi is heartland of Nigeria’s solid minerals riches. It is to solid minerals what Akwa Ibom is to crude oil:
Limestone, gypsum, iron ore, dolomite, granite, coal, clay, marble, etc.

This rail line runs thru Kogi, & will connect it to a Deep Sea Port