Refusal of the Chinese government to provide 85 percent loan component for the Kaduna- Kano rail construction is why the project has stalled.
This was revealed by the Minister of Transportation Mu’azu Sambo on Friday in Abuja.
He said the construction of the Abuja-Kano and Port-Harcourt-Maiduguri rail projects was being delayed by Federal Government’s delay in securing the 85 percent foreign loan meant for the project.
The 85 percent loan meant for the rail project was expected to come from Chinese financiers.
He said the projects, which are on-going, are being run through appropriation funds.
Sambo said, “The Abuja-Kano and Port-Harcourt Maiduguri rail projects are on-going but there is a challenge of the 85 percent foreign loan yet to be secured.
“We have been driving this two projects solely through appropriation, which is part of the 15 percent 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 percent obligation of the Federal Government.
“Until we have the 85 percent component, the project will have to be continually funded through the appropriation.”
