Reps kick against FG’s decision to halt $14.4bn East-West Rail line project

The House of Representatives on Tuesday underscored the need for Federal Government to reverse its earlier decision and continue the East–West Rail Line Project.

The resolution was passed sequel to the adoption of motion sponsored by Hon. Dozzie Nwankwo.

In his lead debate, Hon. Nwankwo expressed concern that the project was stopped by the Federal Ministry of Transportation in 2022, despite the concluded arrangement with Standard Chartered Bank and the Federal Government’s N30 billion commitment to the contractor.

“The House notes that the Federal Executive Council had, in April 2017, granted approval for the construction of 1,400km Standard Gauge East-West Coastal Rail Line Project linking Lagos-Ore-Benin-Sapele-Warri-Yenagoa-PortHarcourt-Aba-Uyo-Calabar-Akamkpa-Ikom with a branch line from Benin to Asaba-Onitsha-Port Harcourt-Onne Deep Seaport.

“The House also notes that the opting out of Exim Bank of China, the contractor to execute the project, the Federal Government, in March 2021, made arrangements for $11 billion alternate counterpart funding with Standard Chartered Bank out of the $14.4 billion required to execute the project.

“The House is aware that in August 2021, the Federal Executive Council approved the award of a contract valued at $11,174, 769, 000 for the project.

“The House is also aware of the importance rail line project to the socio-economic development of the country which necessitated the accelerated completion of the project.

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“The House is disturbed that the project was stopped by the Federal Ministry of Transportation in 2022, despite the concluded arrangement with Standard Chartered Bank and the Federal Government’s N30 billion commitment to the contractor.

“The House is worried that the non-completion of the Rail Project has aggravated the problems of travelers who suffer delay due to the deplorable state of the road coupled with check-points along Calabar- Lagos road.

“The House is cognizant that the inability to complete the project within the projected six years period will continue to put pressure on the two Sea Ports located in Port Harcourt and Lagos and the existing roads,” he noted.

While adopting the motion, the House called on Federal Government to review its 25-year Railway Strategic Plan part of which is to unbundle and commercialize the Nigeria Railway Corporation (NRC).

To this end, the House mandated its Committee on Land Transportation to liaise with the Federal Ministry of Transportation and other relevant government agencies to ensure that the East-West Coastal Rail Project is captured in the 2023 budget estimates.