Chinese firms handling $47bn key FG’s projects

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Chinese firms handling $47bn key FG’s projects
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At least 22 major infrastructural projects worth over $47bn have been linked to Chinese firms as China continues to support its companies to win prime contracts in Nigeria to maintain a foothold on th

e nation’s economy.

The projects are the rehabilitation and construction of airport terminals in Nnamdi Azikiwe International Airport, Abuja, Port Harcourt International Airport, Mallam Aminu Kano International Airport, Kano and the Murtala Muhammed International Airport in Lagos. When the idea of a 25-year railway development plan was mooted in 2006, the Chinese firm got the first contract to build a new line between Lagos and Kano at a cost of $8.3bn.

The company later won the $6.68bn contract for the Ibadan-Kaduna stretch, which consists of four segments and the project could take two to three years to complete, depending on budget, according to the minister. They are the Kano-Kaduna rail, which is the Segment 3 of the Lagos-Kano rail modernisation project with a contract sum of $1.68bn; and the Calabar-Port Harcourt Segment 1, which extends to Onne Deep Seaport of the coastal rail project at a cost of $3.4bn.In September 2016, the China Railway Construction Corporation announced that it had won a $1.8bn contract to construct the Kano city light rail with a total length of 74.3km.

In the communications industry, there are two major projects linked with the Chinese firms worth $670m. The communications system awarded to ZTE Nigeria Limited is meant to provide audio, video and data information for use by the Nigeria Police Force and other security agencies. The China Exim Bank and other Chinese lenders will provide 85 per cent of the contract sum, while Nigeria pay the 15 per cent balance.

Many analysts attributed the seeming attachment of Nigeria and other African countries to China and its corporations in key project developments to China’s cheap labour, low price and favourable funding arrangement.

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