The Minister of Transportation, Rotimi Amaechi, says Nigeria will benefit immensely if it takes loan request to build new rail lines.
Speaking before the Senate Committee on Local and Foreign Debts, Mr. Amaechi said the fund will be used in completing the the Itape-Warri rail line and to begin the Kano to Kaduna and Port-Harcourt to Calabar rail lines.
The Senate committee had invited the minister and some members of the executive to explain how Nigeria can pay back the proposed loans from proceeds from the projects they would be expended on.
President Muhammadu Buhari had on Tuesday October 10 written the Senate to approve the federal government plan to apply for a $5.5 billion loan to fund some capital projects, including the Mambilla hydro-power project, construction of the second runway of the Nnamdi Azikwe International Airport, counterpart funding of rail projects and construction of Bonny road with a bridge across Opobo channel.
Mr. Amaechi, while explaining the economic viability of the proposed rail projects, said Nigeria may not experience development until it grows its rail system.
He said the Ministry has covered all state capitals with its rail design and only requires funds to construct the rail lines.
He said the country has concluded plans to receive 17 new coaches by December.
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