THE Senate Committee on Land Transport was told on Tuesday, in Lagos, that the executive arm of government has suspended the $8.3 billion Lagos-Kano rail modernisation project. Former President Olusegun Obasanjo awarded the contract to China Civil Engineering Construction Company (CCECC).
A representative of the firm, Chi Hong Bing told the panel that the suspension order was contained in a letter dated October 3, 2008. The committee led by Garba Lado was at the Nigeria Railway Corporation (NRC) office on a fact- finding mission.
Lado said he was skeptical about the commitment of CCECC to the project.
Earlier, while addressing the management staff of the NRC, the chairman alleged that a cabal was behind the inefficiency of the rail system in the country.
Lado said that an effective rail system was vital to the development of any nation, and vowed to frustrate the activities of the cabal.
He said that the Federal Government was working hard to transform the railway, noting that a bill seeking autonomy for the NRC was before the Senate.
In his contribution, the Managing Director of NRC, Jetson Nwankwo said the corporation now operates a Public/ Private Partnership with some state governments.
Recently, the House of Representatives moved a motion calling for the investigation of the contract.
The motion was sponsored by 42 members, who claimed that of the total 3,557 kilometres railway network in the country, about 3,505 kilometres were on antiquated narrow gauge and seeking attention.
The lawmakers said that the Federal Government, in a bid to modernise the rail system, fashioned out a $35 billion four-phased 23-year project and the first phase of 1,315 kilometres from Lagos to Kano was awarded at a cost higher than the estimated amount.
“The House is concerned that the first phase of the project spanning 1,315 kilometres from Lagos to Kano, estimated to cost $2.5 billion in line with the international per kilometre rate for railway modernisation project was awarded for $8.3 billion to China Civil Engineering Construction Company (CCECC) for take-off of the project,” he said.
Chinwo further claimed that in spite of the $250 million released to the contractor for the take-off of the project, Nigerians were yet to see any improvement in the rail sector.
He therefore, urged the chamber to allow the committee on land transport, when reconstituted, to investigate the matter adding, “we need to know what happened and where are the contractors.”
Ndudi Godwin Elumelu from Delta State noted that the issue touched on the heart of the nation and urged the House to use its power to get to the root of the matter in line with the oath of office taken by members.
He further said that the founding fathers of the nation placed much emphasis on land transport, stressing that if the rail system in the country was working, Nigerians would not experience the traffic snarl like the type in Lagos and some other cities in the country.
Abdul Ningi from Bauchi State said the state of the railway portrayed the condition of the country adding that the National Assembly in the last dispensation, bent backward to assist the executive to realise the dream of improving rail transport in the country but it was unfortunate that the whole exercise was frustrated.
Ningi lamented that those, who caused the problem were still walking freely on the street of Nigeria. Dino Melaye from Kabba Bunu/Ijumu Federal Constituency of Kogi State said the motion was a test of the commitment of members to democracy in the country and should be supported.