The Federal Executive Council (FEC) has approved the renewal of contract for the Lagos-Ibadan double track railway line which could not be completed in 2006 due to financial constraints.
The contract awarded to Chinese construction company, China Civil Engineering Construction Corp (CCECC), was approved for the sum of $1.487 billion and it is to be concluded in 36 months.
The renewal of the contract is coming after a re-negotiation and re-phrasing of the contract between the Federal Government and the Chinese company.
The Council also approved a variation of contract for the design and construction of the Abuja Rail Mass Transit Project.
Addressing the issue power generation, the Federal Government will also be spending 2.075 million Euros for the supply and installation of spare parts for the Shiroro hydro-electric power plant.
The Minister of Power, Professor Barth Nnaji who briefed State House correspondents on the contracts said that the projects will sustain the generators for another five years of dependable service.
He also stated that another $10.092 million was approved by the cabinet and that it will be for the restoration of the plant units in the Omotosho power plant.
The two contracts approved in the power sector are designed to take care of the short term measures taken by the Federal Government to restore electricity in Nigeria.
The two power plants can generate 300 MW of electricity when fully operational.