A N12.3 billion contract for the rehabilitation of 488-kilometre Lagos-Jebba rail track has been awarded to a Chinese firm by the Federal Government.

The contract, which covers the provision of signal and telecommunication facilitates for the Nigerian Railway Corporation (NRC), is expected to be completed within 10 months by China Civil Engineering and Construction Company (CCECC).

At the signing of the contract yesterday in Abuja, Minister of Transport, Alhaji Isa Bio, said about N24 billion would be needed for the repair of all the rail lines in the country.

He said the project, when completed, would increase the frequency of train movement, particularly when the 25 locomotives ordered from General Electric (GE) are delivered and put into use.

Boi said the current effort at repositioning the railways was to ease movement of goods and services as well as reduce the pressure on the roads.

He remarked that the present administration attaches importance to the rail sector because it is a catalyst for Nigeria's economic and social development being the nucleus of inter-modal transport system.

The minister added that the rail sector remained the anchor of transport business, which the national economy was built and was also at the forefront of the mass movement of people and goods.

He said: "This administration knew the importance of rail transport as the hub of any meaningful transport system in any nation. It is against this backdrop that this administration expressed its interest in revamping the existing rail lines while modernisation and standardisation of the rail system is equally pursued."

The Chairman, Senate Committee on Land Transport, Yakub Lado, said no government could succeed without an effective and efficient transport system and canvassed the review of the 1959 Railway Act to meet present realities.

Also, the Chairman, House Committee on Land Transport, Bernard Udoh, urged the ministry to look into the terms of the contract to avoid ambiguity and lapses that trailed the previous exercise. "You need to ensure that all aspects of the contract are spelt out, and also ensure that this project is fully executed," he said.