The House of Representatives has urged the federal government to reverse its earlier decision on the $14.4 billion east-west rail line project by continuing its implementation because of its economic importance to the nation.
The House also urged the federal government to review its 25-year Railway Strategic Plan part of which was to unbundle and commercialise the Nigeria Railway Corporation.
It mandated its Committee on Land Transportation to liaise with Federal Ministry of Transportation and other relevant government agencies to ensure that the East-West Coastal Rail Project was captured in the 2023 budget estimates.
The resolutions of the House followed the unanimous adoption of a motion move by Hon. Dozie Nwankwo at plenary yesterday.
Moving the motion, Nwankwo said 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-SapeleWarri-Yenagoa-PortHarcourt-Aba-Uyo-Calabar-Akamkpa-Ikom with a branch line from Benin to Asaba-Onitsha-Port Harcourt-Onne Deep Seaport.
He noted 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.
Nwankwo expressed concern that the Federal Ministry of Transportation stopped the project this year, despite the concluded arrangement with Standard Chartered Bank and the federal government’s N30 billion commitment to the contractor.
He also expressed concern that the non-completion of the rail project aggravated the challenge of travelers who suffer delay due to the deplorable state of the road coupled with check-points along Calabar- Lagos road.
The lawmaker said, “Aware that in August 2021, the Federal Executive Council approved the award of a contract valued at $11,174, 769, 000 for the project. Also aware of the importance rail line project to the socio-economic development of the country which necessitated the accelerated completion of the project.
“Cognisant 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.”
SOURCE: THISDAY
