The Ministry of Transportation said 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 Minister of Transportation, Mu’azu sambo said this while addressing newsmen on Friday in Abuja.
The News Agency of Nigeria(NAN) reports that the 85 percent loan meant for the rail project was expected to come from Chinese financiers.
According to him, the projects, which are ongoing, are being run through appropriation funds.
He said: “The Abuja-Kano and Port-Harcourt Maiduguri rail projects are ongoing but there is a challenge of the 85 percent foreign loan yet to be secured.
“We have been driving these 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 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.’’
On the Transportation University in Daura, Sambo said some administrative challenges were responsible for the proposed take-off of the institution in September.
According to the minister, measures were in place to resolve these challenges and commence the school’s operation.
He said: “The Transportation University in Daura ought to have commenced in September but there are specific challenges being encountered.
“Some of the challenges are administrative and efforts are being made to clear them with the National University Commission and the Federal Ministry of Education.”