Nigeria, GE Consortium to negotiate terms for rail concession

The Nigerian government is to begin negotiation with the General Electric (GE) Consortium which has been selected as the preferred bidder for the concession of the western and eastern corridor of the country’s rail network.

Following the favourable evaluation of its bid by the Government, the GE Consortium has been formally notified of its selection as the preferred bidder for the Concession of Lines, associated operational infrastructure, and spur lines of the Nigerian Railway Corporation.

“We look forward to moving on to the crucial negotiation phase, where we will align expectations and finalise specifics in order to develop a strong plan to support the country’s rail infrastructure” Thomas Konditi, President & CEO, GE Transportation – Africa, also mentioned.

Led by General Electric, the world’s premier digital industrial company, the Consortium is comprised of SinoHydro, a leading infrastructure construction services corporation, Transnet, a leader in transportation and logistics infrastructure management and APM Terminals, a global port, terminal and intermodal inland services provider.

The Consortium’s bid was in response to a Request for Proposals by the Federal Ministry of Transport on behalf of the Nigerian Federal Government, initiating a competitive procurement process to award a concession for the rehabilitation, financing and operation of the 3,505km narrow-gauge railway system – comprising the Lagos-Kano-Nguru (Western) and the Port Harcourt-Kaduna Junction (Eastern) with the main spur line from Kafanchan to Maiduguri and other spur lines in the network.

“The Government’s selection of the GE Consortium as preferred bidder is a testament to the excellent collaborative efforts of world-class enterprises leveraging each other’s strengths to produce a solutions-focused proposal,” said Lazarus Angbazo, GE Nigeria President and CEO.

GE Transportation Executive and the Consortium Lead, Eyo Ekpo said, “ A lot of work went into developing a robust proposal that our Consortium believes addresses the government’s strategic objectives, and we’re pleased to have achieved preferred bidder status.” Expo continued “The bid reflects the Consortium partners’ respective expertise and excellent track record in the rail sector.”

The announcement follows the statement by the Federal Ministry of Transportation on the advice of Africa Finance Corporation (AFC), its technical adviser on the Concession, and it triggers the commencement of the next phase: Concession Negotiation. This significant stage involves a more detailed examination of the Consortium’s proposal (i.e. bid value, terms, conditions, scope, assumptions, timelines, etc.) and the negotiations with the Government’s defined performance standards. Subject to agreement between both parties, a full concession award will thereafter be awarded to the Consortium.

Representative of Transnet, Sifiso Nzimande said, “We are pleased to be a partner in this ground breaking concession bid and look forward to the successful conclusion of the negotiations with the government and the opportunity to add value.”

Similarly, SinoHydro Executive, Wang Xinhuai mentioned, “This announcement is a step closer to the opportunity to transform rail infrastructure and transportation logistics in Nigeria; a country with huge potential.” He added “We are very excited to partner with this resourceful consortium to deliver value.” Echoing the sentiments of the other partners, Damope Agbaje, Logistics Executive, APM Terminals stated, “The announcement by the Federal Government is recognition of the meticulous planning and attention to detail which showed how our Consortium will transform Nigeria’s rail infrastructure and the economy as a whole.”