Lagos-Calabar coastal rail: FG identifies another investor, splits CCECC franchise

The China Civil Engineering Construction Company (CCECC) is set to lose the total grip on the Lagos-Calabar coastal rail project following the inability of the company to provide the required 85 per cent funding of the project to the Federal Government.

Recall that the CCECC were to provide 85 per cent funding for the Lagos-Calabar coastal rail project while the Federal Government provides the 15 per cent counterpart funding.

However, speaking while fielding questions from newsmen in Uyo, Akwa Ibom State late on Thursday during a 3-Day Retreat by the Federal Ministry of Transportation, the Minister of Transportation, Alhaji Mu’azu Jaji Sambo explained that a new investor has been identified because the CCECC could not secure the 85 per cent foreign facility for the project.

According to the minister, “You know it is an EPC-financed contract. In other words, the contractor who was supposed to have provided an 85 per cent foreign loan while Nigeria provides 15 per cent counterpart funds, did not fulfil their own obligation.

“Now, that alone has affected 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 3-day retreat, Sambo noted that the transportation sector has contributed to the socio-economic needs of Nigerians and promoted the overall sustainable development of the nation, but more will be done in closing the yawning infrastructural gaps.

Sambo explained that the infrastructural gaps and other challenges necessitated the development of a National Development Plan (Medium-Term Development Plans 2021-2025 and a Long-Term Plan called the Nigeria Agenda 2050) to invest massively in infrastructure.

He said that 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 implementation of the National Development Plan 2021-2025, through the Transport Sector Medium Term Development Plan (MTDP) 2021-2025 Policy Document, aimed at accelerating the growth of the transportation sector in the country.

The minister told the participants that the policy thrust includes improving safety and transportation security, collaboration and synergy amongst transportation stakeholders, professionalism and human capacity building.

Others include strengthening institutional governance and regulation as well as multi-modal infrastructural developments.

He frowned at infighting and unnecessary quarrel between boards and agencies within the transportation sector and called for synergy and cooperation hoping that at the end of the retreat, the staff will have a new mindset 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 with the uttermost 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 corporations at all times within recognized boundaries,” he said

Setting the tone for the 2022 Ministerial Retreat, the Minister of State for Transportation Prince Ademola Adegoroye said the retreat will involve presenting programmes and projects of the ministry, especially the quick wins (low-hanging fruits) by setting realistic timelines to achieve set goals.

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 Ajana said the 2022 edition of the Ministerial Retreat was timely as the present administration is finalizing its diversification agenda with a view to changing the reins of leadership in the year 2023.

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