The Oyo State Government has signed an agreement with a giant construction company, China Civil Engineering Construction Company (CCECC) to construct a light rail system in the state.
The 38kms rail will stretch from the Toll-Gate/Sanyo axis of the state to Queen Elizabeths Way (Dandaru, Mokola) before terminating at Ojoo axis of the state.
The project is to be executed on a Public Private Partnership agreement between the Oyo state government and the construction giant.
While the company is expected to source for 85 percent of the required sum, the state government will provide 15 percent as its own counterpart funding of the project.
The project has a-12 month duration for completion. However, the duration, according to the agreement begins from the day the company was able to secure the loan facility to execute the project.
At a brief signing of the Memorandum of Understanding which held at the Executive Council Chamber of the Governor’s office, Agodi Ibadan, the state government assured that the project will not only address the perennial traffic congestion across different parts of the state, but would also boost both the commercial and economic activities of the people of the state.
The government described the development as a milestone in the administration’s quest to modernize major cities in the state.
The Commissioner for works and transport, Mr. Wasiu Dauda while briefing newsmen after the signing which was witness by members of the Executive Council assured that in a matter of four or five months, the construction company will secure the needed loan for the project, adding that a key requirement for the loan facility was the signing of the agreement between the parties involved.
He said, “The state government is embarking on the project because if you get to some areas, the traffic congestion is beyond imagination but in the case for instance if someone is coming from Lagos and going to Ojoo, he would only alight at the Toll Gate. He needs not board another cab, but just enter into the lightrail to save time and resources.
“The company will source for 85 percent of the fund and Oyo state will pay the balance of 15 percent. The project will greatly help ease the problem of traffic congestion. It is a PPP initiative. We are optimistic that in another four to five months, the company should be able to access the loan facility and part of the requirements to getting the loan is the signing of the agreement between the company and the state government.
“The lightrail will begin from Toll Gate/Sanyo down to Dandaru and then to Ojoo. It will cover about 38kms. The project will massively help reduce traffic congestion within the city and also boost commercial and economic activities. The duration of the project will be twelve months with effect from the day they are able to facilitate the loan to execute the project.”
The Executive Director CCECC, Jack Lyao, who led top officials of the company to the singing ceremony said the company which is famous for its reputable projects across the country is very eager to hand over a very profitable project for Oyo state.
He further assures that the company will do all the needful to ensure that the project does not exceed the approved 12 months from the day the loan facility is secured.
“You know CCEC is a very big company, especially in Nigerian and we major in railways, roads, buildings and bridges and even in railways we have done so many of it in places like Abuja, Lagos and others. We are eager to hand over a very profitable project for Oyo state. Once we receive the payment, we will set the commencement date and after then, 12 months to deliver the project”, he said.
