The Oyo state government has signed a memorandum of understanding with a Chinese construction company for the construction of 38km light rail system in order to boost transportation across the state.

At a brief signing of the Memorandum of Understanding which was held at the Executive Council Chamber of the Governor’s office, Agodi Ibadan, the state government assured that the project will not only address the perennial traffic congestion across different parts of the state, but would also boost both the commercial and economic activities of the people of the state.

The government described the development as a milestone in the administration’s quest to modernize major cities in the state.

The Executive Director of the company that will handle the project, Jack Lyao, who led top officials of the company to the signing ceremony, said the company which is famous for its reputable projects across the country. He added that the company is very eager to hand over a very profitable project for Oyo state.

He further assures that the company will do all the needful to ensure that the project does not exceed the approved 12 months from the day the loan facility is secured.

The 38kms rail will stretch from the Toll-Gate/Sanyo axis of the state to Queen Elizabeths Way (Dandaru, Mokola) before terminating at Ojoo axis of the state.

The project is to be executed on a Public Private Partnership agreement between the Oyo state government and the construction giant.

While the company is expected to source for 85 percent of the required sum, the state government will provide 15 percent as its own counterpart funding of the project.

Report by Kunle Ojo