Coastal Rail: CCECC Loses Franchise Over Lack Of Counterpart Funding

The minister of Transportation, Engr. Mu’azu Sambo, has disclosed that the federal government will engage another investor for partnership on the Calabar -Lagos Coastal Rail line.

The decision to split the franchise of the China Civil Engineering Construction Company (CCECC) , according to the minister, was because the firm has failed to meet the counter funding for the construction of the rail.

Speaking while fielding questions from newsmen in Uyo, Akwa Ibom state, during a 3 day Retreat by frderal ministry of Transportation, Sambo explained that the holder of the franchise could not secure 5 per cent foreign facility and 15 per cent Nigeria counterpart funds .

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

“Now that alone has affected commencement of that project . But as it is now, the Ministry has identified the company; an investor that is willing and we are in talks with the company on the basis of sharing the scope of work . Once we are through, I will brief the media accordingly,” he pointed out.

While addressing participants at the 3 day Retreat, Sambo noted that 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 National Development Plans (Medium-Term Development Plans 2021-2025 and a Long-Term Plan called the Nigeria Agenda 2050) to invest massively in infrastructure.

He said such investment will ensure macroeconomic stability, enhance the investment environment, improve living conditions, implement climate change mitigation.

He disclosed this generate 21 million full-time jobs and lift 35 million people out of poverty by 2025 – and set the stage for achieving government’s commitment of lifting 100 Million Nigerians out of poverty in the next 10 years.

He said the ministry has domesticate 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 include 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.

The minister frowned at