MOTA-ENGIL INFORMS ABOUT THE SIGNING OF A NEW CONTRACT IN NIGERIA, AMOUNTING TO 1,820 MILLION USD
MOTA-ENGIL S.G.P.S., S.A. (“MOTA-ENGIL”), informs that its subsidiary for the Africa region has signed a contract for the design, construction and financing of a railway infrastructure in the Federal Republic of Nigeria and in the Republic of Niger.
The contract above referred established with the Ministry of Transport of Nigeria amounts to circa of 1,820 million USD and will include the project, the procurement, the construction, as well as the financing (EPC- F), of the railway line with circa of 284 km + 94 km, “Kano-Danbatta-Kazaure-Daura-Mashi-Katsina-Jibiya-Maradi (Niger Republic) with a branch line to Dutse”.
During the coming months, MOTA-ENGIL will, together with the Government of Nigeria and the financial institutions, work on the completion of the ESIA (Environmental and Social Impact Assessment), on the necessary expropriations, on the initial mobilization and preparation of the project, towards its completion and towards the final approval of the financing by the Government of Nigeria.
That financing is being structured and negotiated by KFW-IPEX BANK, Africa Finance Corporation and Credit Suisse, as Financial Advisors of MOTA-ENGIL and Mandated Lead Arrangers for the transaction, will have the support of several international Export Credit Agencies (ECA) and will be taken by the Republic of Nigeria.
Once that phase is complete, the railway construction works will begin, lasting for 32 months.
Being the Group’s ever largest contract, it has been demanding over the past 3 years a unique preparation and organization with the aim of mitigating risks, maximizing profitability, reducing execution times, minimizing the impact on local communities and the cost for the Republic of Nigeria.