Contract with Toronto Metro fails to materialize
It may be pontificated that the reason why LASG refused to go through with the contract and opt for Chinese EMUs (Electric Multiple Units) may be as a result of two issues
- 1) Technical Costs - The subway cars all needed to be refurbished for use in the Lagos Light Rail, but also the operational costs of the Toronto Metro cars would have been uneconomical, due to innate design flaws and the fact that they had exceeded their design lifespan (30 years).
- 2) Financial Costs - The LASG and the Federal Government of Nigeria have always been able to secure special concessions with the Chinese in the form of delayed payments and financing arrangements such as with the Exim Bank of China. Patronizing Chinese foreign content, allows this understanding to come to fruition. The Chinese in this instance have negotiated with LAMATA, financing options for the EMUs
Written by Godfrey Amata for BBB