Why $5.3bn Ibadan-Kano rail loan approval is delayed – Amaechi – Newstrends
Connect with us

Railway

Why $5.3bn Ibadan-Kano rail loan approval is delayed – Amaechi

Published

on

Minister of Transportation, Rotimi Amaechi,  has accused some selfish lawmakers of causing the long delay in securing $5.3bn China loan approval for the construction of the second phase of the new Lagos-Kano railway project (Ibadan-Kano) with their ‘frivolous’ probe.

He said the probe and generated publicity on the details of a 2018 Chinese loan agreement had negatively affected the country and delayed the approval of the loan for the railway project.

The first phase, Lagos-Ibadan rail line costing about $2bn is currently on trial run, having been substantially completed.

In July 2020, a House of Representatives panel had raised the alarm over clauses conceding Nigeria’s sovereignty to China in a loan agreement.

The probe dragged on for weeks, despite assurances from Abubakar Malami, attorney-general of the federation, that the Federal Government will work in the best interest of Nigerians, while Amaechi had also warned that the investigation may affect Nigeria’s chances when it comes to loans.

Giving an update on the situation on Monday when he featured on a Channels Television programme, Amaechi said the probe resulted in seven months of “waste”, as the approval process was delayed.

“That’s where we are. The loan for Ibadan to Kano, up till now we haven’t got the approval. And at the point that happened, we were just on the verge of getting approval. They withdrew. They’re asking more questions,” the minister said.

“The two things I said at that meeting; they’re happening now. There are other countries we have loan agreements with, that we entered into agreement to borrow money from. They don’t usually ask for immunity clause, because they trust you, so they expect that you’ll pay back. The moment you brought this to the public, it was ‘ah! You’re giving China immunity clause, so you must give us.’

“The selfishness of those members, who I don’t know what they’re pursuing, has put the country into jeopardy. Now, other countries are asking for immunity clause in their own agreements.

“The other aspect I said was that the Chinese may likely withdraw. That’s where we are; we’re talking to them. They’ve promised to give us the loan, but at least it’s held us back since June till now. We’ve done seven months. If they had give us money since June, we’ll have gone far. We would have started clearing by now. But imagine seven months wasted because one or some few members of the house of reps went to the public.”

Amaechi also gave a brief explanation of what was covered in the immunity clause regarding the Chinese loan agreement.

“I’ve explained over and over that what the immunity clause simply does is to say ‘look, in case you’re not able to pay back, I want to be given the opportunity to take you to court or to arbitration as it is in the clause’,” he said.

“What the immunity clause does for us as Nigeria is that you can go for everything in case the court awards you anything, but you can’t go for our diplomatic assets, military assets, oil assets. So, what’s remaining? Airport, railway… those are things you can go for in case the court awards you.”

Railway

Niger State duscusses intracity railway to link Abuja with Chinese firm

Published

on

Niger State duscusses intracity railway to link Abuja with Chinese firm

Niger State Governor, Umaru Bago, has held a meeting with a delegation from the China Railway Corporation in Minna, the state capital.

Special Adviser to the Governor on Digital Communications, Abdullberqy Ebbo, disclosed this in a statement posted on his X handle on Tuesday.

According to Ebbo, during the meeting, they discussed working out a partnership to establish a railway network that would span the state’s three geopolitical zones as well as Abuja.

The statement read, “Niger State Governor, Umaru Bago, hosted a delegation from the China Railway Corporation in Minna, Niger State.

“The corporation, renowned for constructing China’s extensive railway network, discussed working out a partnership to establish a railway network across three geopolitical zones in the state and Abuja.

“The meeting also delved into potential collaborations in various sectors, including agriculture, housing, and the construction of airline hangars and the Cango terminal at Bola Tinubu International Airport Minna.

“With plans to solidify the partnership, the delegation is set to draft a Concept Note and a Memorandum of Understanding (MoU) to establish a business relationship with the state.

“The ambitious project is anticipated to be funded through the China Exim Bank, marking a significant step towards improving transportation infrastructure and economic growth in Niger State.”

PUNCH reported in October 2023 that the Chinese government expressed its commitment to refinance and complete the Abuja-Kano and Port- Port-Harcourt-Maiduguri railway projects.

In February 2024, the Lagos State Governor, Babajide Sanwo-Olu, also had a meeting with the China Civil Engineering Construction Corporation in Beijing, China, to finalise plans on the state’s rail projects.

-The PUNCH

Continue Reading

Railway

Vandals destroy rail track in Kaduna community

Published

on

Vandals destroy rail track in Kaduna community

Vandals have destroyed a rail track at Chidunu village in the Chikun Local Government Area of Kaduna State.

The hoodlums taking advantage of high rate of insecurity in the area stormed the village and reportedly loaded their three trucks with track materials forcefully removed from the rail.

Public Relations Officer for the Northern District of the Nigeria Railway Corporation, Alhaji Abdullahi, in a statement on Monday, said two of the truck were stopped and impounded by security agents.

However, a Canter truck driver absconded with a portion of the stolen materials.

Some of the vandals were also apprehended by security operatives around the community.

Abdullahi highlighted the logistical challenges with the urgency to act before nightfall and the volatile nature of the area.

“It was difficult to arrange for logistics to evacuate track rails and sleepers before it got dark,” he said, emphasizing the collaborative efforts with local vigilantes and hunters to bolster surveillance along the affected railway stretch.

“We received a report on Sunday that the vandals were arrested during their illicit operation with two long trucks loaded with rail track materials,” Abdullahi said.

He added that the case has been handed over to the Nigeria Security and Civil Defence Corps (NSCDC) for further investigation.

“The case is at present with the NSCDC, O.C. Anti-Vandal for further investigation,” Abdullahi stated.

Continue Reading

Railway

UK firm to build PH-Enugu-Abuja standard rail line – FG

Published

on

UK firm to build PH-Enugu-Abuja standard rail line – FG

The Federal Government has signed a Memorandum of Understanding with Messrs MPH Rail Development Limited, a United Kingdom company for the construction of the Port Harcourt–Enugu–Calabar–Abuja Standard Gauge Rail Line.

The project when completed will be operated under a public-private partnership framework.

These details are contained in a statement issued by the Federal Ministry of Transportation and published on its website.

Under the MoU, the UK firm will manage the design, construction, commissioning, operation and eventually transfer to the Nigerian Railway Corporation.

The ministry stated that the MoU signing followed the approval of the Outline Business Case and the issuance of a compliance certificate by the Infrastructure, Concession, and Regulatory Commission.

This clearance allows Messrs MPH Rail Development (UK) Limited to focus on assembling the necessary documents for the Federal Executive Council (FEC) approval to proceed with the project.

Some of the essential documents for advancing this initiative are listed as a comprehensive feasibility study report, a full Business Case Study, an Environmental and Social Impact Assessment, the production of a Resettlement Action Plan, and the design of a Financial Model to implement the project.

This would ensure transfer of the line to the Federal Government under a PPP arrangement without incurring loans or debts for the Nigerian government or its agencies.

At the MoU signing ceremony, Alkali pledged the ministry’s support for the successful implementation of the project.

He emphasized the importance of diligent preparation and submission of all requisite documents to expedite FEC’s approval.

The statement read in part, “As part of the initiative to consolidate the ongoing railway modernisation projects consistent with the Renewed Hope Agenda of Presidential Bola Ahmed Tinubu administration, the Minister of Transportation, Senator Saidu Ahmed Alkali, has executed a Memorandum of Understanding on behalf of the Federal Ministry of Transportation with Messrs MPH Rail Development (UK) Limited to enable the company to carry out the design, construction, commissioning, operation and transfer of the Port Harcourt–Enugu–Calabar–Abuja Standard Gauge Rail Line on Public – Private Partnership basis.”

Continue Reading

Trending

Skip to content