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  • FG to seek Chinese government funding for rail projects, says minister

    FG to seek Chinese government funding for rail projects, says minister

    …vandals, vendors of public infrastructure may face death penalty, says Aliero

    The federal government plans to seek funding assistance from China for the construction of rail projects in Nigeria.

    Following directives from President Bola Tinubu, Vice President Kashim Shettima is expected to engage with Chinese President Xi Jinping to secure funds for the Ibadan-Abuja and Kaduna-Kano rail projects.

    This information was disclosed by the Minister of Transportation, Senator Said Alkali, on Monday during an inspection of the Kaduna-Kano rail projects by the National Assembly Joint Committee on Land Transport.

    The Minister acknowledged that funding issues have stalled progress but noted that the Federal Government has secured funds for the Kano-Kaduna segment.

    He said: “The President is desirous in ensuring that these projects are completed and being put into use because transportation is an enabler of economic growth and a gateway to the nation’s economy. It is, of course, one of the eight priority areas of the present administration.

    “The president has directed the Vice president to engage President Xi in a bilateral discussion on the financing of Ibadan-Abuja and Kaduna-Kano rail projects. So far, Kaduna-Kano has been released. We are just trying to cascade the final stage for the drawdown of the loan so that they will have the financing. That of Ibadan to Abuja is also under very serious engagement with the Chinese government”.

    The minister also hinted that the ministry is working with security agencies to deploy surveillance and ensure that rail infrastructures are not vandalized.

    He said: “The Ministry and the Nigerian Railway Corporation are working hard to ensure that these vandals do not destroy our properties. We are deploying so many major surveillances in conjunction with the security agencies to ensure that these properties are not allowed to be vandalized.”

    The Chairman of the Senate Committee on Land Transport, Sen. Adamu Aliero condemned the vandalization and sale of public infrastructure by vandals and vendors.

    He said the Senate was considering legislation that would criminalize the act and make the death penalty the punishment for anyone found guilty.

    Aliero said: “On the issue of vandalization, it is very unfortunate that it is not only the rail line that has been vandalized. As you rightly know, power installations, oil and gas installations, and bridges have been vandalized. The National Assembly is thinking of coming up with very strong legislation that will make it criminal. If possible, for any vendor caught sabotaging public infrastructure, the punishment should attract the death penalty. Probably if that happens, it will go a long way in reducing vandalization drastically”.

    He pledged the commitment of the National Assembly to ensure the timely completion of the rail projects.

    “We took a ride from Kano to Makarfi and we are impressed with what we have seen so far. We have seen a lot of dedication by the ministry and also by the contractor in trying to deliver the project in time. We understand that the deadline given to them is 2025 or 2026.

    “We are hoping that by 2025 if they sustain the tempo, they will be able to deliver. There are other challenges connected with the project, particularly the funding arrangement, which we intend to discuss with the Debt Management Office (DMO), the Minister of Finance, the Attorney General of the Federation, and also the Minister of Transportation because we have oversight on railways and we will do whatever is seemingly possible to ensure that this project is completed in time. We will lobby our colleagues in the National Assembly to ensure that this project does not suffer from inadequate funding.”

    A member of the committee in the House of Representatives, Mrs. Blessing Onuh said the National Assembly may review the existing rail contract to include an anti-theft mechanism due to the spate of vandalization.

    Read Also: Kano-Daura rail project to be completed by 2025 – FG

    She said: “Railway transportation is very important to the growth and development of every nation and we need to give it the much-needed attention as it stands.

    “They need funding for the job to be completed and to meet the timeline. The National Assembly will do anything and everything that we can to ensure that we attend to the funding issue as soon as possible.

    “In addition to that, we understand that the clips are being stolen. We have resolved (the Senate and the House committee members) to go back and discuss further on how we can review the contract and see how we can install anti-theft mechanisms to stop people or vandals from vandalizing the existing tracks that we have.”

  • Port-Harcourt-Maiduguri rail project to be completed, operational soon – Minister

    Port-Harcourt-Maiduguri rail project to be completed, operational soon – Minister

    The Minister of Transportation, Senator Said Alkali, has promised to ensure the completion and full operation of the PortHarcourt-Maiduguri rail network.

    The minister explained that upon completion of the rail line, Nigerians would enjoy good trade, access market, and business places easily, and also boost agricultural production and its movement.

    Alkali said the Port Harcourt-Maiduguri rail network is a clear testament to the current administration’s commitment to infrastructural development, economic growth, and national cohesion.

    He expressed his resolve to ensure that the rail project is not only completed on time but also meets the highest international standards.

    This is contained in a statement in Abuja on Monday by the Special Assistant (Public Affairs) to the minister, Jamilu Ja’afaru.

    The minister noted that the Port Harcourt-Maiduguri rail line is not just a transportation project but a transformation project.

    Read Also: FG begins nomination process for 2024/25 Commonwealth scholarship

    He said: “It is about the movement of goods, people, and opportunities. It is about connecting Nigeria and driving growth.

    “The 1,657km rail network, cutting across 13 States; Rivers, Abia, Enugu, Benue, Nasarawa, Plateau, Bauchi, Gombe, Borno, Akwa Ibom, Cross River, Ebonyi, and Adamawa promises to unlock unprecedented benefits.

    “In Rivers State, the Port Harcourt-Maiduguri rail line will boost the state’s status as a major hub for commerce and trade, connecting it to key economic centres across the country.

    “Abia, known for its vibrant commerce and industry, will enjoy improved business linkages, bolstering local industries and empowering small and medium-sized enterprises.

    “The line will also stimulate agricultural productivity in states like Benue, known as Nigeria’s “food basket”, providing farmers with better access to markets, reducing post-harvest losses, and fostering rural development while Nasarawa and Plateau will reap the benefits in terms of easier movement of mineral resources, thereby boosting mining activities.

    “In the North-East, States like Bauchi, Gombe, and Borno will benefit significantly as the rail line would facilitate the quick and cost-effective movement of goods and people, fostering social integration, economic growth, and the much-needed post-insurgency reconstruction in the region.”

    He added that Akwa Ibom and Cross River will witness enhanced tourism potential, with easier access to their rich cultural heritage and beautiful landscapes while Ebonyi and Adamawa states will also benefit from improved trade and commerce, fostered by the efficient transportation of goods and services.”

  • Rail project: Landlords accuse NRC of flouting court order

    The planned demolition of Adisa Housing Estate in Ebute-Metta, Lagos, despite a court order has pitted three property owners against the Nigerian Railway Corporation (NRC).

    Alhaji Moruf K. Salami, Mrs. Uyo Nwajei and Alhaja Aisha Aminu Gwadabe, through their counsel, A. O. Aponmade & Co, on July 26, obtained an order restraining NRC, Federal Ministry of Works, Power and Housing, China Construction & Electrical Investment Company Limited, Inspector-General of Police and Attorney General of the Federation from demolishing properties at 308B, Murtala Muhammed Way, Adisa Housing Estate, Ebute Metta, Lagos. The said properties had been earmarked for demolition to pave the way for the construction of railway lines to connect Lagos to Abeokuta.

    Justice M.S Hassan of the Federal High Court, Lagos, granted the order. He also barred the defendants from trespassing on the land, or to evicting the plaintiffs from the said property.

    The plaintiff are alleging that  NRC is trying to circumvent the order.

    They explained that due process must be followed in acquiring the properties since they are not aware to the rail project. In a statement, Gwadabe said their ordeal began last year when residents of Adisa Housing Estate observed that trucks were being parked by the NRC to block the entrance to the estate. She further stated that the construction firm officials, predominantly Chinese, also forcibly entered the estate to carry out mapping and surveying exercises for the construction of new railway lines from Lagos to Abeokuta.

    She explained that the said properties were bought from the Federal Ministry of Works, with adequate allocation paper and payments made to the prototype housing estate account of the Federal Ministry of Works in 1996. She, however, regrets that the plan of NRC and China Construction & Electrical Investment Company Limited was to acquire the property without complying with the provisions of the law and paying commensurate compensation.

    “Both the constitution and the Act establishing NRC set out the minimum requirements that must be met by this agency if it intends to take over the immovable property of anyone. There must be a notice of its intention to acquire, served on us. This would be followed by discussion on compensation and then payment,” she insisted.

    Gwadabe alleged that the defendants sent a valuer without notifying the property owners. “On June 22, 2018, the valuers came with representatives of NRC and Federal Ministry of Works and Housing to hold a meeting with the landlords at which they announced that our compensations were ready and they had come to pay us and give us two weeks to vacate our properties after payment.,” she claimed.

    But the plaintiffs said they demanded to know how much compensation they will be paid, but were instead told to sign an agreement first before being shown the cheque due to them. They also claimed that agents of NRC have begun heavy drilling activities in the estate.

    “They are doing this even though they are fully aware that we have a pending case in court. They are doing this in flagrant disobedience to a subsisting order of a court of competent jurisdiction. This is impunity and we will not stand by and allow it,” the plaintiffs said.

    When contacted, NRC Director Civil, Anthony Onyokoko, said the compensation is general, and there is no need to be selective on it, adding that what the NRC paid as compensation ‘was adequate by the law’.

    “We know that the three plaintiffs are in court. They need to agree with us and come out of court. Just a few houses are still standing. It is a Federal Government project. We are pleading with them to collect the compensation money,” he said.

  • Lagos govt partners foreign firm on light rail project

    The Lagos State government has signed a major agreement for the state’s Rail Mass Transit (LRMT) with an experienced global railway systems aggregator and rolling stocks manufacturer, Alstom SA of France.

    The project is part of efforts to rev up the multi-modal transport system to ease traffic congestion in the state.

    After a comprehensive review of the rail project, which is supposed to have begun passenger operation but for unforeseen challenges, the state government said the Marina to Mile 2 section of the project, known as the Blue Line Rail, would be ready for passenger operation in 2022.

    The state government had engaged consultants to carry out a technical review and due diligence on the implementation of the project.

    This substantially focused on civil works.

    The consultants reported back to the government that the operation of the first phase may only begin in 2022.

    Alstom SA France, a firm with over 100 years of railway experience covering 60 countries, was subsequently engaged to review the report of the consultants.

    In its report, the firm agreed that the first phase of the project could only become operational in 2022, based on proposed funding pattern.

    At the signing of the agreement with Alstom SA, the Managing Director of Lagos Metropolitan Area Transport Authority (LAMATA), Mr. Abiodun Dabiri, who signed on behalf of the state government, said the partnership was the result of the commitment of Governor Akinwunmi Ambode towards the transformation of public transportation in the state.

    The LAMATA chief said a consortium of experts the state government engaged to undertake a technical due diligence on the LRMT Blue Line Project (Mile 2 – Marina) had developed a roadmap, which was accepted by the state government to bring the railway project into operations.

    In its final report, Dabiri said, the consortium outlined its findings and proposed a roadmap to complete the civil infrastructure works as well as the Operation & Maintenance (O&M) infrastructure, which will be needed for the commencement of passenger operation.

    He said: “Based on the final report submitted, the consortium of Alstom Transport SA France has been engaged for the procurement, engineering, construction, installation of the O and M moveable infrastructure and commissioning of railway systems towards the commencement of passenger operations for LRMT Blue Line project from Marina to Mile 2.”

    Highlighting the extent of work to be carried out by the consortium, Dabiri noted that for ease of implementation, the work plan had been divided into two phases: phase one for demonstrating the non-public operation of the existing rolling stock before end of second quarter of 2019.

    He added: “For this purpose, a track length of about 3.0 kilometres from Iganmu Station to the National Theatre will be electrified. This operation would be done with the rolling stocks already supplied for the Blue Line project.”

    The LAMATA chief said the current efforts of the Ambode administration on the rail project was to bring to fruition the state government’s commitment to deliver a multi-modal transport system and transform the public transportation landscape with a view to moving it closer to the achievement of the first integrated and multi-modal transport system in Nigeria.

    A Director of Alstom SA, Mr. Guy Jean-Pierre, thanked the state government for the confidence reposed in the firm and the opportunity given to partner with the state on the Blue Line Rail project.

  • Buhari okays $15b loan negotiation for rail project

    PRESIDENT Muhammadu Buhari has approved negotiations for a $15 billion loan for the completion of work on Port Harcourt–Maiduguri rail project.

    Minister of Transportation Rotimi Amaechi spoke to State House correspondents after a meeting with Buhari at the Presidential Villa, Abuja.

    He said the President also approved negotiations of funds for the execution of Lagos–Calabar rail project to ensure its speedy completion.

    He said: “Don’t forget that the Lagos-Calabar is yet to start because of funds; the Port Harcourt–Maiduguri is yet to start because of funds, but the President has approved that we negotiate for funds. We are almost concluding negotiations for the Port Harcourt – Maiduguri. We are looking at the cost – is in the neighbourhood of between 14 and $15 billion.’’

    He explained that progress is being made in the area of revamping rail network across the country.

    According to him, the laying of tracks on the Lagos-Ibadan route would commence next month, stressing that the project will provide jobs to Nigerians.

    He said: “If the rain doesn’t start early we will start laying tracks on the Lagos-Ibadan route in April and hopefully we believe we can complete it in December or January and open it up for passengers and business and we expect about 6,000,000 tons of cargo out of the 30,000,000 tons of cargo that we have between Lagos and Kano.

    “In terms of job creation, you can be rest assured that it will be in thousands,” he added.

    He said the Itakpe–Warri rail project was being reconstructed as he hoped  that it would be inaugurated by August.

    He said: “The tracks were already there but they were vandalised so we are rebuilding those tracks and then building new stations.

    “We are also reconstructing a yard that was abandoned. All things being equal, the place should be ready soon, we gave them May as completion period but let’s say by August we should be inaugurating.’’ he added

    The minister reassured that adequate security had been taken to guarantee safety of passengers travelling by  rail.

    “There are policemen in all coaches that ply our routes. So if the passengers are attacked by armed robbers, they will report while they take action,” he said.

     

  • Chinese bank reduces funding on speed rail project

    Chinese bank reduces funding on speed rail project

    Minister of Transportation Rotimi Amaechi yesterday said the Chinese Exim Bank, which promised to provide 85 per cent of the funds for the Lagos-Ibadan rail project, has reduced its exposure by seven per cent.

    The ground-breaking for the standard gauge rail project, which will stretch to the Apapa Port, was done by Vice President Yemi Osinbajo last month.

    He said the bank, which was to fund 85 per cent of the project, is now funding 78 per cent.

    The minister said the bank insisted it would not pay for land, survey and tax, stating that with the foreign exchange rate and extension to the ports, the project could not be completed as scheduled in 2018.

    Amaechi spoke at a meeting with four committees of the House of Representatives, which threatened to cut funding for the ministry, if it failed to spend the N243billion in its vault.

    Spokesmen of the committees made the threat after condemning the non-implementation of the 2016 budget.

    They are Committees on Aviation; Land Transport; Maritime Safety and Administration; Ports, Harbours and Waterways.

    The committees, which visited the ministry’s headquarters in Abuja on oversight function, threatened to give a zero allocation to the ministry in 2017.

    Chairman, Committee on Maritime Safety and Administration Mohammed Bago, said the ministry presented various documents to the committees, which did not contain facts.

    He said the ministry received N243 billion and was yet to spend it, adding that if the money was not used before April 30, it would receive a zero allocation in 2017.

  • Lagos-Ibadan’s N458b speed rail project takes off

    Lagos-Ibadan’s N458b speed rail project takes off

    A major step to giving Nigerians a modernised railway was taken yesterday when Acting President Yemi Osinbajo inaugurated the construction of the Segment II of the Lagos-Ibadan Rail Project at the Nigerian Railway Corporation (NRC) Compound in Ebute Metta, Lagos.
    It will be extended to the Lagos Ports Complex in Apapa to facilitate movement of goods.
    Prof. Osinbajo said the Federal Government was committed to delivering a fast and efficient rail service system between Lagos and Ibadan with the completion of the project next December.
    He spoke of government’s determination to revive the railway culture.
    The Federal Government awarded the project to China Civil Engineering Construction Corporation (CCECC) at the cost of $1.5 billion (about N458 billion).
    Governors Akinwunmmi Ambode (Lagos), Ibikunle Amosun (Ogun), Abiola Ajimobi (Oyo), Minister of Transportation Chibuike Amaechi, Oba of Lagos Rilwan Akiolu, All Progressives Congress (APC) Chairman John Odigie-Oyegun, Deputy Chairman Segun Oni, Senators Gbenga Ashafa and Olusola Adeyeye, Aminu Isa, among others witnessed the event.
    He said the Federal Government through the Ministry of Transportation had feasibility studies on 13 new train routes to connect state capitals in accordance with the vision of the government.
    Describing the event as historic, Osinbajo said the project would create jobs, stimulate the expansion of agro-allied industries and boost economic activities in towns along the corridor.
    When fully on stream, the speed train, Osinbajo added, would carry about one million passengers per annum, while freight traffic along the route is also expected to hit two million metric tonnes cargoes per annum.
    “This ground breaking event, which signals the first formal day of construction work on the project, signals the determination of the government to modernise the railway system.
    “It also underscores the activation of the campaign promises of President Muhammadu Buhari to deliver to Nigerians world class rail project, that will not only be safe and convenient, but reliable and affordable.”
    The Acting President said the project would be instrumental to the government’s march towards economic recovery and its road plans.
    He said government had provided adequate marching funds for the smooth continuation of the project in the 2016 and the 2017 budgets.
    He listed the reduction of freight cost, increase in the lifespan of roads, enhancement in the export potentials of the nation’s agro-allied products, among the many advantages of the speed trains.
    He praised the commitment of the China-Exim Bank, the Chinese government, the Federal Ministry of Finance and Transportation for their dogged commitment on delivering on the administration’s agenda to bequeath a new train service deal for Nigerians.
    Amaechi described the project as a step in the right direction to “optimise the Federal Government’s change agenda in the transportation sector.
    He said contrary to old set pattern, the transportation sector is an economic index for growth and development.
    The minister explained that the project involved the construction of anxillary facilities among which is the construction of eight railway stations along the corridor at Apapa, Ebute-Metta, with intermediate stations at Agege, Kajola, Papalanto, Abeokuta, Omi-Adio, a passing station at Olodo while the Ibadan station will be an intermediate station with technical operation.
    The station at Kajola in Ogun State, Amaechi added, would be a locomotive workshop, rolling stock depot and marshalling yard.
    Amaechi said traffic volume forecast is that the project would handle over 3.2 million tons of goods/cargoes per annum in its first year of operation, while passenger services can take 16 pairs of passenger trains.
    “This train service will in the near future be extended from Ibadan to Ilorin, Minna, Kaduna and Kano and a link to the Federal Capital via Kaduna.
    The minister said the project captured the acquisition of land for joint estate development partnership as well as private sector logistic park and goods platform in order to “generate the revenue for the sustenance of the rail line and in the actual repayment of the loan.”
    He allayed the fears that the project could be abandoned by the government as it did in 2006, saying: “On this very one, work will not only start, but it will be completed in record time.”
    Ambode described the project as a new dawn in the transportation architecture of Nigeria, adding that the speed train which is a fast and convenient means of transportation would foster regional integration and growth.
    The governor, who assured that work would soon begin on its Red Line, said once all these come on stream, government would spend less on road repairs while billions of hours lost to traffic as a result of traffic snarl due to over-concentration on the roads would be a thing of the past.
    CCECC President Zhao Dianlong thanked the government for believing in the firm to deliver a world class train service.
    According to him, the work would create 4,000 direct jobs and increase the value in building/engineering sector among others.
    Dianlong said the CCECC work portfolio raked in $188.4billion last year, with total profit put at $99.8 billion.
    He said the CCECC, established in 1979, is among the top 250 global Civil Engineering Companies and had been delivering world class projects since it entered the Nigerian market 35 years ago.
    Oba Akiolu urged the company to employ qualified Nigerians as senior managers and ensure that only qualified hands work in order to avoid handing over to Nigerians a bad job.
    Ashafa, Chairman, Senate Committee on Land Transport, described the project as a fulfilment of the promises of the APC.
    “One major aspect of this project is generation of employment. At least 250,000 jobs will be created through this project.
    “Many people will be employed directly for the construction of the railway project.
    “The project will bring a positive change to the economy of the people and traders will also benefit in the development,”Ashafa said.

  • Amaechi: China’s $1.5b loan for Lagos-Ibadan rail ready

    Amaechi: China’s $1.5b loan for Lagos-Ibadan rail ready

    The Federal Government yesterday said it had secured $1.5 billion from the China Exim Bank to begin work on the Lagos-Ibadan rail line project.
    Minister of Transport Rotimi Amaechi said this when he appeared before the Senate Committee on Land Transport, chaired by Gbenga Ashafa, to give a status report of the 2016 budget and also present the 2017 budget.
    Amaechi said the foundation of the Lagos-Ibadan Segment Two of the Lagos- Kano rail project would be laid before March 31.
    He said the target of the Federal Government is to begin work from Apapa sea port to Ogun and then to Ibadan.
    Amaechi said: “In the first quarter of 2017, the foundation of the Lagos-Ibadan Segment Two of the Lagos- Kano rail project will be laid.
    “The implication here is that we will start the Lagos-Ibadan rail line before March 31.
    “Our target is to begin from Apapa sea port down to Ogun and then to Ibadan.
    “The counterpart fund is ready but don’t forget that we are borrowing from China. The China Exim Bank is processing it.
    “Our 15 per cent is ready. The bank has released $1.5 billion.
    “It is also envisaged that Segment Three of the Lagos –Kano rail project, which is Kano-Kaduna stretch, as well as the first phase of the coastal railway line (Lagos-Calabar) beginning from Calabar to Port Harcourt with extension to Onne Deep sea port will begin after the conclusion of the negotiation of a financing loan agreement.”
    He called on the National Assembly to approve the government’s plan to borrow $30 billion.
    The minister said the money to finance some of the rail projects are contained in the $30 billion loan request the government is seeking the National Assembly’s approval for.
    According to him, Nigeria cannot sign any loan agreement with China on rail projects without the approval of the National Assembly.
    Amaechi said all rail projectsnot completed in last year’s budget have been included in the 2017 budget.
    “All these ongoing rail projects not completed last year have been reintroduced into the 2017 budget.
    “The ministry is in the process of procuring additional locomotives and coaches to meet the rising demand of passenger traffic of the Abuja (Idu)-Kaduna (Rigasa) rail line,” he added.
    Ashafa said the committee would work with the minister to consolidate on the achievements and performances recorded last year.