Portuguese construction company Mota-Engil says it has signed a contract for the supply and financing of railway rolling stock in Nigeria worth about US$916 million.
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The deal, signed with the Federal Ministry of Transportation, is for the 400-kilometre Kano – Dutse – Maradi railway construction project, the company said.
Mota-Engil, Portugal’s biggest builder, said the contract was signed after a long process of validation and due diligence by the local regulatory authorities.
The delivery and commissioning of the rolling stock will occur over the next 48 months, it said.
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The contract is part of a $2 billion rail construction project connecting Nigeria and Niger Republic. The project was launched by the administration of former President Muhammadu Buhari.
“This contract reinforces the commitment of the Nigerian government to improve the regional connectivity and the economic development in the north of the country and strengthens the capacity of the MOTA-ENGIL GROUP to support that development effort in this region of Africa,” the company said.
While receiving over $200 million heavy-duty equipment to be deployed for the rail project weekend, logistics manager Nuno Colaço told journalists in Lagos: “We have lots of projects in the pipeline and we are very excited about the future here in Nigeria. Shoreline has 51 per cent while we have 49 per cent. Our core business is in construction, but not only railway, but civil construction, we build dams, roads. We are in all the segment of construction. We have already started the Kano-Maradi railway line.”
He said the rail project is employing over 300 Nigerians and will employ as much as 100,000 at its peak.
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