GE Withdraws from Narrow Gauge Concession Project
The 2,400 kilometer narrow gauge concession project may have suffered a temporary setback as the General Electric (GE) Co., a member of consortium of companies, which won the concession project, has pulled out of the arrangement.
Bloomberg reports Thursday that the GE which was in talks with the Nigerian Government through the Ministry of Transportation said it was giving up the railway concession and handing it over to Transnet SOC Ltd.
It was however, added that the withdrawal from the concession arrangement was in line with its strategy to exit the transportation business.
Agreements GE reached with the Nigerian government “are now being negotiated by Transnet and its consortium partners” including SinoHydro of China and APM Terminals, the Boston”, GE said in an emailed response to questions.
Bloomberg further reports that GE will focus on infrastructure development in Nigeria in areas such as health care and power.
“Transnet has been a trusted partner of GE for several decades,” GE said, adding, “we have confidence in their ability and that of the other consortium members to execute on the rail concession project successfully.”
Daily Trust reports that there has been uncertainty over the delay in the implementation of the concession agreement with sources suggesting that the agreement may have met brick wall.
The sudden announcement by GE came as the Minister of Transportation, Rotimi Amaechi this morning, convened an emergency Project Steering Committee Meeting of Lagos-Ibadan Standard Gauge Line.
The meeting holds at the CCECC yard inside the Nigeria Railway Corporation (NRC) compound with the Managing Director of the Nigerian Ports Authority (NPA), Mrs. Hadiza Usman in attendance for the first time.
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