The financials for the Lagos-Calabar Coastal Rail project may be diluted and another investor invited to invest in the coastal rail that has been on the drawing board since 2014, The Nation gathered on Friday.
Hitherto, the Chinese behemoth corporation – China Civil Engineering Construction Company (CCECC) has had a total and exclusive grip of the project, but this may slip following the inability of the contractor to come up with the required 85 per cent funding of the project says the Federal Government.
Former President Goodluck Jonathan had come up with the Lagos-Calabar Coastal Railway to further deepen Nigeria’s stride in the modernisation of the Nigerian Railway Masterplan by connecting more state capitals by standard gauge. The railway would have connected about 15 state capitals in the south of Nigeria
The CCECC according to the contractual agreement was to provide 85 per cent funding for the coastal rail project while the Federal Government come up with the balance as counterpart funding.
The Minister of Transportation Engr Mu’azu Jaji Sambo who disclosed this at a 3-day retreat by the Fedral Ministry if Transportation in Uyo, Akwa Ibom State on Thursday, said a new investor has been identified because the CCECC has failed in securing their part of the bargain for the project.
Sambo said: “You know it is an EPC-financed contract. In other words, the contractor was supposed to have provided an 85 per cent foreign loan, while Nigeria provides 15 per cent counterpart funds. They did not fulfill their own obligation.
“That has delayed the commencement of that project. But as it is now, the Ministry has identified another company; an investor that is willing to fund the project and we are in talks with the company on the basis of sharing the scope of work with the CCECC.
“CCECC is the holder of the franchise for the Lagos-Calabar coastal rail project, so we need to work out sharing formula for the new investor and CCECC. Once we are through, I will brief the media accordingly.”
While addressing participants at the retreat, Sambo noted that the transportation sector has contributed significantly to the nation’s gross domestic product (GDP) and the socio-economic wellbeing of Nigerians, but that more will be done in closing the infrastructural gaps.
Sambo explained that closing the infrastructural gaps and other challenges necessitated the development of a National Development Plan (Medium-Term Development Plan 2021-2025 and a Long-Term Plan called the Nigeria Agenda 2050).
According to him such investment will ensure macroeconomic stability, enhance the investment environment, improve living conditions, and implement climate change mitigation.
He disclosed that this will generate 21 million full-time jobs and lift 35 million people out of poverty by 2025 – and set the stage for achieving the government’s commitment of lifting 100 million Nigerians out of poverty in the next 10 years.
He said the ministry has domesticated the National Development Plan 2021-2025, for implementation, through the Transport Sector Medium Term Development Plan (TSMTDP) 2021-2025 Policy Document, aimed at accelerating the growth of the sector.
The policy thrust of the medium term plan Sambo disclosed includes improving transportation safety and security, greater stakeholders’ collaboration and synergy, professionalism and capacity building.
Others include strengthening institutional governance and regulation as well as the development of robust multi-modal transportation.
He frowned at infighting and unnecessary quarrel between boards and agencies within the transportation sector and called for synergy and cooperation, and urged all participants to leave the retreat determined to implement the policies of the ministry.
“I will not end this speech without calling your attention to two salient matters that would aid us in our quest for progress and development and these are harmonious working relationships within our governing boards and respect for delegated authorities and responsibilities.
“Ensuring a harmonious working relationship between the ministry and its agencies on one hand and the legislative arm of Government who by the provisions of our constitution that we have sworn to uphold is to be accorded all necessary respect and cooperation at all times within acceptable boundaries,” he said
Setting the tone for the 2022 Ministerial Retreat, the Minister of State for Transportation Prince Ademola Adegoroye said the retreat will seek to project the quick wins (low-hanging fruits) for and by all its agencies and departments and set realistic timelines for them.
He said the participants will brainstorm on the best strategy to adopt in the execution of programmes and projects.
The Permanent Secretary, Federal Ministry of Transportation, Dr Magdalene Ajani said this year’s Ministerial Retreat which was the last under the Buhari administration would be consolidating on the diversification agenda of the administration which is primed at seeing other sectors outside oil, such transportation, contribute maximally to the GDP.