Nigeria suspends $8.3 billion railway project

afrol News, 30 October - Nigerian Federal Government has suspended US $8.3 billion Lagos-Kano rail project awarded to Chinese Civil Engineering Construction Corporation (CCECC) by former president Olusegun Obasanjo.
:bash:
A senior Nigerian presidency official confirmed that contract awarded to CCECC in 2006 had been suspended to allow government to make a comprehensive review of the project.

The project has been widely critcised for its sluggish pace in rebuilding and rehabilitating Nigeria's single track rail line. The project has also been accused of inflating prices.

Fact finding committee leader Garba Lado at Nigeria Railway Corporation (NRC) offices said he was skeptical about commitment of CCECC to the project, but said he was not aware of suspension.

"There was no record before Senate indicating that contract was given due process. This is the first time committee is hearing about the suspension. I want to believe that it is because of the various accusations from different quarters that company is not serious about the job," he said.

Earlier, while addressing management staff of NRC, Mr Lado alleged that a group was behind inefficiency of rail system in the country, saying an effective rail system was vital to development of any nation.

"From our own assessment, I do not expect anything positive, because last time we came here, we met similar equipment. It is like nothing is done here. We want action and progress," he said.

He said House was concerned that first phase of the project spanning 1,315 kilometres from Lagos to Kano, estimated to cost US $2.5 billion in line with international per kilometre rate for railway modernisation project was awarded for $8.3 billion to CCECC.

While government had only paid a small fraction, of US$250 million of project's cost, Mr Chi Hong Bing, project representative, said his firm had made some progress on 1,315-kilometre Lagos-Kano double track standard gauge, which is the first phase of the 25-year-long modernisation project.

Nigeria has a network of 3,505 kilometres of narrow-gauge single track lines, covering nine of country's 36 states. Most of its 200 locomotives however, broke down long ago, reports stated.

By staff writer

© afrol News

Really, this current administration is a complete joke...what else have they been doing instead of nullyfing all contracts signed under Obasanjo? Ridiculous.

I fully understand why Obsanjo wanted a third term, at least a lot more would have been realised in the meantime! Nigeria can´t really lose more time with all this stupid nonesense. I wish OBJ was back!

The issue was the way the project was progressing, even under Obasanjo the Project was the slowest in the world.

This review doesn't mean it will be scrapped, but perhaps things will now accelerate.

The issue was the way the project was progressing, even under Obasanjo the Project was the slowest in the world.

This review doesn't mean it will be scrapped, but perhaps things will now accelerate.

Why are you being so optimistic? I am sorry my friend but I have learned the hard way that there can be no such thing when the current Nigerian administration is concerned. The man in power is shifting things here and there with no order or sense of direction in sight at all! For 2 years, he has been giving us the same change bull but where is the change? Nigeria is way... way worse off than it was with OBJ, even with fertile soil to grow in and fresh oppurtunities constantly arising. Can't you see that there is no hope with Yar'Adua's gov't, hoping for a brighter future now, would only make you more depressed when your dreams come crashing down.

Totally off topic subject but the current state of the Tinapa Resort is really something. Nearly half a billion dollars siphoned into a white elephant project. I tried to reject that concept but time and time again, Nigerian officials seem to develop new ways to cheat the country and dig a hole closer and closer to infinity.

Imho, any nigerian forumer onthis site would prove a far more worthy head of state than the current riducle in charge. :ohno::ohno:

Yes I may be optimistic, but weren't you alive when Obasanjo was in power.

What was the state of the Project?

This has nothing to do with Yar'Adua.

This has to do with the Middlemen and the various State governors mismanaging certain funds.

With or without Yar'Adua nothing has happened.

Yar'Adua was smart enough to halt a project that was going nowhere.
You can blame his administration for not providing the necessary regulation for Tinapa, but judge things properly not under one general umbrella. What about the Airport in Akwa Ibom, that is under review, should that have been left alone, even though it wasn't being actualized.

im not surprised by this at all. i told you guys this would happen.

I am just so sad whenever i hear such news..Nigeria still doesnt having a functioning, modern railway system in the year 2009!!!! Really mind boggling!!! It still can't generate enough power. SA has 20 times more capacity than Nigeria with far less population...If these basic things are not there, how can factories be built, how can investment come in, how can multinationals establish factories, research centres, etc here, how can we have meaningful degrees from our universities, how can our graduates contibute to knowledge and development, how can there be security, how can the economy grow, how can we be a manufacturing and exporting country and ....It is just so sad and unphamtomable that all the Trilliions of dollars that has been pumped into the system has gone down the drain....WHAT IS WRONG WITH US?? ARE WE THAT WICKED THAT SUCH ATROCITIES CAN HAPPEN YEAR IN YEAR OUT AND WE STILL GO ABOUT OUR LIVES NORMALLY??? NIGERIA IS REALLY TWISTED AND OUR SOUL IS TOTALLY LOST!!!
Can't we for once take decisive actions on past leaders (they are actually rulers. Nigeria has never being blessed with leaders) and start punishing them if not for the misnagement of the nations resources but to teach future Nigerian generations yet unborn basic principles on integrity and good governance??? Has EFCC really ever gone after the kingpins??
Just take a look at what is happening in Dubai..a testament of money well spent. Every last penny of it. See Thailand, Malaysia,Indonesia, etc that were on the same level with Nigeria not too long ago...I was depressed when a learnt a couple of years ago that Honda decided not to establish a car factory in Nigeria again after considering the roads (or lack of it), power situation, purchasing power of an average Nigerian amongst other things...NIGERIA needs to wake up and time is running out fast!!!!

Does it occur to any one here that this project did not pass due process and the cost was inflated? We just want anything to go in Nigeria. Lets do it right!!!

Nigeria suspends $8.3 billion railway project



Really, this current administration is a complete joke...what else have they been doing instead of nullyfing all contracts signed under Obasanjo? Ridiculous.

I fully understand why Obsanjo wanted a third term, at least a lot more would have been realised in the meantime! Nigeria can´t really lose more time with all this stupid nonesense. I wish OBJ was back!


To be back for more corruption to persist? At times you sound like a dictator

CORUPTION MUST BE ELIMINATED IN NIGERIA. WITHOUT THAT THERE WILL BE NO PROGRESS AND NO HOPE. DON'T LET ANYONE DECEIVE YOU THAT ANYTHING WILL CHANGE WITH PRAYERS OR OTHERWISE. DON'T LET ANYONE DECEIVE YOU THAT THERE IS HOPE.

While Obasanjo made some progress, his whole camp was tainted by sycophants and the corrupt elite who put him in power. One of his ministers (aviation portfolio) is even a convicted thug/murderer. Having said that, Obasanjo administration was a total disaster which enriched a few people and extended VERY little progress to the actual masses. Any person claiming otherwise is fooling himself.

Yar'Adua is announcing his new cabinet next week. Hopefully ALL Obasanjo elements will be eliminated and a new technocrats team will be installed. I PRAY that Yar'Adua will bring back Ngozi Okonjo-Iweala.

There are rumors that PDP thugs like AMADU ALI are pressuring Yar'Adua for ministerial appointment. If this is true, then I give up on Yar'Adua. I predicted he would be useless a year ago.

Why are you being so optimistic? I am sorry my friend but I have learned the hard way that there can be no such thing when the current Nigerian administration is concerned. The man in power is shifting things here and there with no order or sense of direction in sight at all! For 2 years, he has been giving us the same change bull but where is the change? Nigeria is way... way worse off than it was with OBJ, even with fertile soil to grow in and fresh oppurtunities constantly arising. Can't you see that there is no hope with Yar'Adua's gov't, hoping for a brighter future now, would only make you more depressed when your dreams come crashing down.

(...)

Imho, any nigerian forumer onthis site would prove a far more worthy head of state than the current riducle in charge.

I 100% agree, the current preident is a lame duck, one step forward and three steps back! I never supported him from the miniute he entered office.

He won´t propel Nigeria to new heights!

Why are you being so optimistic? I am sorry my friend but I have learned the hard way that there can be no such thing when the current Nigerian administration is concerned. The man in power is shifting things here and there with no order or sense of direction in sight at all! For 2 years, he has been giving us the same change bull but where is the change? Nigeria is way... way worse off than it was with OBJ, even with fertile soil to grow in and fresh oppurtunities constantly arising. Can't you see that there is no hope with Yar'Adua's gov't, hoping for a brighter future now, would only make you more depressed when your dreams come crashing down.

Totally off topic subject but the current state of the Tinapa Resort is really something. Nearly half a billion dollars siphoned into a white elephant project. I tried to reject that concept but time and time again, Nigerian officials seem to develop new ways to cheat the country and dig a hole closer and closer to infinity.

Imho, any nigerian forumer onthis site would prove a far more worthy head of state than the current riducle in charge. :ohno::ohno:

tinapa's failure is not as a result of stealing money but rather the feds have decided not to let it be successful because its tax free (which as agreed to unde obj) and because it s located in the east of nigeria

While Obasanjo made some progress, his whole camp was tainted by sycophants and the corrupt elite who put him in power. One of his ministers (aviation portfolio) is even a convicted thug/murderer. Having said that, Obasanjo administration was a total disaster which enriched a few people and extended VERY little progress to the actual masses. Any person claiming otherwise is fooling himself.

Yar'Adua is announcing his new cabinet next week. Hopefully ALL Obasanjo elements will be eliminated and a new technocrats team will be installed. I PRAY that Yar'Adua will bring back Ngozi Okonjo-Iweala.

There are rumors that PDP thugs like AMADU ALI are pressuring Yar'Adua for ministerial appointment. If this is true, then I give up on Yar'Adua. I predicted he would be useless a year ago.

:lol: :lol: :lol: :lol: :lol: :lol:

I guess there's no harm in wishful thinking...
But personally I'm just glad he hasn't fired Soludo YET...
(but of course only because the CBN Gov's post is tenured).

Yes I may be optimistic, but weren't you alive when Obaslanjo was in power.

What was the state of the Project?

This has nothing to do with Yar'Adua.

This has to do with the Middlemen and the various State governors mismanaging certain funds.

With or without Yar'Adua nothing has happened.

Yar'Adua was smart enough to halt a project that was going nowhere.
You can blame his administration for not providing the necessary regulation for Tinapa, but judge things properly not under one general umbrella. What about the Airport in Akwa Ibom, that is under review, should thagt have been left alone, even though it wasn't being actualized.
Actually, that's not quite true...

The Yar'Adua administration's scrapping of the Railway Development Office, established in the Presidency during the Obasanjo administration (and which was dedicated solely to the 25-year railway development masterplan) effectively put this contract on hold.
_____________________________

PS: The railway modernisation contract was signed with the CCECC (which has a solid track record of building modern rail systems) in October 2006 and provided for an advance payment of 1.1356 billion dollars. Thus far, only a single 250 million dollar payment has been made (in March 2007 under the Obasanjo administration). Nevertheless, CCECC has since completed the survey, the engineering design and construction drawings, has imported massive construction equipment and machinery, and has set up quarries and yards in different locations in the country. But it had also indicated that it will not continue to work without further payment and that delays will only ultimately aggravate and escalate project costs.

Actually, that's not quite true...

The Yar'Adua administration's scrapping of the Railway Development Office, established in the Presidency during the Obasanjo administration (and which was dedicated solely to the 25-year railway development masterplan) effectively put this contract on hold.
_____________________________

PS: The railway modernisation contract was signed with the CCECC (which has a solid track record of building modern rail systems) in October 2006 and provided for an advance payment of 1.1356 billion dollars. Thus far, only a single 250 million dollar payment has been made (in March 2007 under the Obasanjo administration). Nevertheless, CCECC has since completed the survey, the engineering design and construction drawings, has imported massive construction equipment and machinery, and has set up quarries and yards in different locations in the country. But it had also indicated that it will not continue to work without further payment and that delays will only ultimately aggravate and escalate project costs.

Alright

:lol: :lol: :lol: :lol: :lol: :lol:

I guess there's no harm in wishful thinking...
But personally I'm just glad he hasn't fired Soludo YET...
(but of course only because the CBN Gov's post is tenured).

Ministerial list: Yar’Adua snubs PDP
By Musikilu Mojeed and Ihuoma Chiedozie, Abuja
Published: Monday, 3 Nov 2008

There were indications in Abuja on Sunday that President Umaru Yar’Adua had not sought the input of the leadership of the Peoples Democratic Party in the ongoing reconstitution of his cabinet.

Yar’Adua, who had on Wednesday dropped eight full ministers and 12 ministers of state, is expected to send a list of fresh nominees to the Senate before the end of this week.

During the administration of former President Olusegun Obasanjo, the national leadership of the PDP played crucial roles in the appointment of ministers, special advisers/assistants and members of boards of federal parastatals.

Whenever appointments were about to be made by Obasanjo, the PDP national headquarters was always besieged by politicians and lobbyists seeking appointments for themselves or their candidates.

But investigation by our correspondents on Sunday indicated that Yar’Adua had not been consulting with the top hierarchy of the PDP in choosing the would-be ministers.

Some top officials of the party claimed that they were not being carried along by the President on the reconstitution of his cabinet.

“I can tell you that everything is being handled in the Presidential Villa. We don’t know what is going on. Most of the time, we get to know about what the President plans to do or is doing on the pages of newspapers,” one of the top officials of the party said in Abuja.

He said rather than consult the party, Yar’Adua had been dealing with a small clique in and a few state governors.

“If you ask any honest national leader of the party today, he or she would tell you that we have no insight into what the President is doing since he does not consult us,” the party chieftain said.

He added that it was worrisome that the concept of supremacy of the party was not being complied with by the President, who he said, had promised to adhere to due process in all his undertakings.

Another official said that by ignoring the leadership of the party in ministerial appointments, the President had ridiculed the platform that brought him to power and weakened the PDP.

He said, “ Dr. Ahmadu Ali (former PDP National chairman) and his team were very powerful during their tenure because Obasanjo carried them along during appointments. Obasanjo did most of his appointments in consultation with the party and that shored up the profile of party officials.

“When it comes to appointing members of the All Nigeria Peoples Party and the Progressive Peoples Alliance into his cabinet, the President deals with the leadership of those parties.

“But when it comes to appointing members of his own party into his cabinet, he ignores the party and deals with individuals.

“You can see that since the noise about ministerial appointment started, politicians have not been trooping to the national secretariat to lobby us. It is because they know that we are not in a position to influence anything.”

The Special Adviser to the President on Communications, Mr. Segun Adeniyi, and the National Publicity Secretary of the PDP, Prof. Rufa’i Alkali, could not be reached for comments on the matter on Sunday. Calls made to their mobile telephones were not picked.

But Mr. Chijioke Adindu, the Special Assistant, Media, to the PDP National Chairman, said Yar’Adua had not ignored his boss and other party chiefs in shortlisting the ministerial nominees.

“You know that this is a PDP government and the President is a man who believes strongly in following due process. There is no way that he won’t consult formally or informally with his party before taking crucial decisions,” Adindu said.

Meanwhile, indications emerged on Sunday that Yar’Adua had shelved planned trip to Katsina, his home state, at the weekend, to avoid lobbyists who had laid ambush for him.

It was gathered that the President was avoiding the lobbyists to ensure that he selected people that he personally believed were right for the job.

A source, who disclosed this in Abuja, explained that the President might make the trip next weekend, after he would have submitted the ministerial nominees’ list to the Senate.

The source explained that many lobbyists decided to seek audience with Yar’Adua in Katsina due to their inability to gain access to the Presidential Villa.

The source added that among the lobbyists were some former governors, who are counting on Yar’Adua’s comradeship as a former colleague in the Governors’ Forum.

Revieing the deals with China and South Korea is in the interest of Nigeria, and ensuring that the oil hunters would not pilferage Nigeria to its own detriment.

Revieing the deals with China and South Korea is in the interest of Nigeria, and ensuring that the oil hunters would not pilferage Nigeria to its own detriment.

^^
woow! this is the most clear thinking fella on this thread so far.
i totally agree with you buddie!:okay:

From my understanding, judging by the cost per Kilometer of constructing Railways internationally, the tottal cost of this project should be $2.5 billion. This is less than 1/3 of the actual cost of awarding it. Nigeria has been on the receiving end of some very awful inflated contracted. Whilst not trying to blame anybody for this, the question we have to ask is that who is paying the cost of these.

From my understanding, judging by the cost per Kilometer of constructing Railways internationally, the tottal cost of this project should be $2.5 billion. This is less than 1/3 of the actual cost of awarding it. Nigeria has been on the receiving end of some very awful inflated contracted. Whilst not trying to blame anybody for this, the question we have to ask is that who is paying the cost of these.

The Nigerian Oil will pay for it. That's what happens when you can't do something by yourself.

$ 8.3 billions? for how many kims is the project supposed to be? is it electrified too.? anyone know?

It is not electrified, it is for about 1100 kms.

Ministerial list: Yar’Adua snubs PDP
By Musikilu Mojeed and Ihuoma Chiedozie, Abuja
Published: Monday, 3 Nov 2008

There were indications in Abuja on Sunday that President Umaru Yar’Adua had not sought the input of the leadership of the Peoples Democratic Party in the ongoing reconstitution of his cabinet.

Yar’Adua, who had on Wednesday dropped eight full ministers and 12 ministers of state, is expected to send a list of fresh nominees to the Senate before the end of this week.

During the administration of former President Olusegun Obasanjo, the national leadership of the PDP played crucial roles in the appointment of ministers, special advisers/assistants and members of boards of federal parastatals.

Whenever appointments were about to be made by Obasanjo, the PDP national headquarters was always besieged by politicians and lobbyists seeking appointments for themselves or their candidates.

But investigation by our correspondents on Sunday indicated that Yar’Adua had not been consulting with the top hierarchy of the PDP in choosing the would-be ministers.

Some top officials of the party claimed that they were not being carried along by the President on the reconstitution of his cabinet.

“I can tell you that everything is being handled in the Presidential Villa. We don’t know what is going on. Most of the time, we get to know about what the President plans to do or is doing on the pages of newspapers,” one of the top officials of the party said in Abuja.

He said rather than consult the party, Yar’Adua had been dealing with a small clique in and a few state governors.

“If you ask any honest national leader of the party today, he or she would tell you that we have no insight into what the President is doing since he does not consult us,” the party chieftain said.

He added that it was worrisome that the concept of supremacy of the party was not being complied with by the President, who he said, had promised to adhere to due process in all his undertakings.

Another official said that by ignoring the leadership of the party in ministerial appointments, the President had ridiculed the platform that brought him to power and weakened the PDP.

He said, “ Dr. Ahmadu Ali (former PDP National chairman) and his team were very powerful during their tenure because Obasanjo carried them along during appointments. Obasanjo did most of his appointments in consultation with the party and that shored up the profile of party officials.

“When it comes to appointing members of the All Nigeria Peoples Party and the Progressive Peoples Alliance into his cabinet, the President deals with the leadership of those parties.

“But when it comes to appointing members of his own party into his cabinet, he ignores the party and deals with individuals.

“You can see that since the noise about ministerial appointment started, politicians have not been trooping to the national secretariat to lobby us. It is because they know that we are not in a position to influence anything.”

The Special Adviser to the President on Communications, Mr. Segun Adeniyi, and the National Publicity Secretary of the PDP, Prof. Rufa’i Alkali, could not be reached for comments on the matter on Sunday. Calls made to their mobile telephones were not picked.

But Mr. Chijioke Adindu, the Special Assistant, Media, to the PDP National Chairman, said Yar’Adua had not ignored his boss and other party chiefs in shortlisting the ministerial nominees.

“You know that this is a PDP government and the President is a man who believes strongly in following due process. There is no way that he won’t consult formally or informally with his party before taking crucial decisions,” Adindu said.

Meanwhile, indications emerged on Sunday that Yar’Adua had shelved planned trip to Katsina, his home state, at the weekend, to avoid lobbyists who had laid ambush for him.

It was gathered that the President was avoiding the lobbyists to ensure that he selected people that he personally believed were right for the job.

A source, who disclosed this in Abuja, explained that the President might make the trip next weekend, after he would have submitted the ministerial nominees’ list to the Senate.

The source explained that many lobbyists decided to seek audience with Yar’Adua in Katsina due to their inability to gain access to the Presidential Villa.

The source added that among the lobbyists were some former governors, who are counting on Yar’Adua’s comradeship as a former colleague in the Governors’ Forum.
Maybe, I missed something in the article because I did not see anything about Okonjo-Iweala or bringing her back.

Revieing the deals with China and South Korea is in the interest of Nigeria, and ensuring that the oil hunters would not pilferage Nigeria to its own detriment.
Why stop at China and South Korea?!

From my understanding, judging by the cost per Kilometer of constructing Railways internationally, the tottal cost of this project should be $2.5 billion. This is less than 1/3 of the actual cost of awarding it. Nigeria has been on the receiving end of some very awful inflated contracted. Whilst not trying to blame anybody for this, the question we have to ask is that who is paying the cost of these.
Can you please help the rest of us by providing the source (or authority) for those numbers? Thanks.

Why stop at China and South Korea?!
From the article I've read, it referred to deals with those countries. Ofcourse all deals and contracts should be scrutinised, and not pushed through. Too many politicians do so for their own selfish benefits. Our very own Jacob Zuma, with the swedish arms deal, is no different.

Btw, I found a video of the Nigerian rail modernization projectL

http://www.youtube.com/watch?v=66XpNrRupEw&feature=related

I PRAY that Yar'Adua will bring back Ngozi Okonjo-Iweala.

O h yes, she is a genius!:):cheers:

While Obasanjo made some progress, his whole camp was tainted by sycophants and the corrupt elite who put him in power. One of his ministers (aviation portfolio) is even a convicted thug/murderer. Having said that, Obasanjo administration was a total disaster which enriched a few people and extended VERY little progress to the actual masses. Any person claiming otherwise is fooling himself.

Yar'Adua is announcing his new cabinet next week. Hopefully ALL Obasanjo elements will be eliminated and a new technocrats team will be installed. I PRAY that Yar'Adua will bring back Ngozi Okonjo-Iweala.

There are rumors that PDP thugs like AMADU ALI are pressuring Yar'Adua for ministerial appointment. If this is true, then I give up on Yar'Adua. I predicted he would be useless a year ago.
Zexyworm, as I noted above, there's no harm in wishful thinking, but it appears from the ThisDay news report below that Mr. Yar'Adua has no desire to eliminate "Obasanjo elements" -- as Kashim-Imam, Rilwanu Lukman, Ufot Ekaette and Bode Augusto (among others) were all key players in the Obasanjo administration.

-----------------------------------

ThisDay, Tuesday November 11, 2008
SSS Screens Kashim-Imam, Egwu
•Lukman, Agusto prepare to face panel
From Chuks Okocha in Abuja, 11.11.2008

The screening of ministerial nominees by the State Security Service (SSS) continued yesterday as potential ministers faced a panel headed by the Director-General of the service, Mr. Afakirya Gadzama.

THISDAY gathered that the ministerial screening is on- going, but must be concluded by Friday and the final list submitted to the Senate which is currently on retreat in Kano.

Among those who appeared yesterday was former Presidential Liaison Officer and National Assembly Adviser to ex-President Olusegun Obasanjo, Alhaji Ibrahim Kashim-Imam.

He was the governorship candidate of the Peoples Democratic Party (PDP) in Borno State in the 2003 and 2007 elections which he lost to Senator Ali Modu Sheriff of the All Nigeria Peoples Party (ANPP).

Former governor of Ebonyi State, Dr. Sam Egwu, also appeared before the panel. Egwu was governor between 1999 and 2007 and he was a candidate for the National Chairman of the ruling party before he pulled out for Chief Vincent Ogbulafor who was the party hierarchy’s choice.

THISDAY checks revealed that the former Lagos State nominee in the first ministerial list last year, Chief Bode Augusto, whose nomination was turned down by the Senate, is also on the list.

According to THISDAY sources, Kashim-Imam appeared for his batch screening in the morning. He was screened and asked to go.

Both Egwu and Kashim-Imam spent roughly one hour before the SSS panel.
It was gathered that part of the screening exercise includes filling of bio-data forms and taking of the fingerprints for necessary documentation.

It was also gathered that the current Speaker of the Kwara State House of Assembly, Alhaji Ibrahim Issa Bio, was among those screened.

An SSS source told THISDAY that the former Director General of the Budget Office, Augusto, is expected to appear any moment for his screening.

Others who appeared last Thursday for the screening included the Director General of National Food and Drug Administration and Control (NAFDAC), Prof. Dora Akunyili, the Director-General of National Agency for the Control of Aids (NACA), Prof. Babatunde Osotimehin, former Secretary to the Government of the Federation, Chief Ufot Ekaette, among others.

Meanwhile, THISDAY has been informed that Dr. Rilwanu Lukman, who served as Minister of Petroleum Resources in the Ibrahim Babangida government and is currently Honorary Adviser on Energy to the President, may appear before the panel today.

THISDAY had reported last week that Lukman was being considered for the position of Energy Minister.

“The President believes the ministry is very key to the success of his administration and would want somebody with full ministerial powers to head it,” a Federal Government official had told the newspaper. “Yar’Adua wants to undertake serious reforms in the sector. He wants that to be his legacy. He knows the sensitive nature of the ministry and he either keeps it or gives it out to someone who can do the job very well.”

Lukman is one of the most competent hands for the job, but THISDAY learnt that the former Secretary-General of Organisation of Petroleum Exporting Countries (OPEC) may not be well disposed to accepting the job.
Yar’Adua’s preference for Lukman is said to have been reinforced by the fact that Lukman headed the Power Sector Reform Committee which submitted its report to the President last June.

“The President believes Lukman is in a better position to implement the report and the recommendations,” the source said.

The committee had recommended the suspension of privatisation of the power sector. It said Nigeria needs $85 billion (about N10.2 trillion) to meet her 20,000 megawatts electricity target by 2020.

It had also said the sum would be expended on the ailing sector in the next 12 years in order to achieve government’s short, medium and long term target as contained in the Power Sector Masterplan.

It also recommended that 60-70 per cent of the country’s electricity requirement would be dependent on gas, while the remaining are hydro, coal and solar. Lukman warned then that while gas-related electricity accounts for about 70 per cent of total requirement, unless there was peace in the Niger Delta, the nation’s quest for adequate power supply would be a mirage.

If Nigerians and the government can fight corruption to the barest the country can move forward.

The suspend in the topic of this thread should be changed to cancels because the government has finally cancelled this project in it's entirety.
News below:

FG may revoke $8bn rail contract
By Everest Amaefule and Rasheed Bisiriyu
Published: Friday, 21 Nov 2008
The Federal Government may revoke the $8bn railway contract awarded to a Chinese firm by the administration of former President Olusegun Obasanjo.

Skip to next paragraph

File
President Umar Yar’Adua

The Chief Economic Adviser to President Umaru Yar’Adua, Mr. Tanimu Yakubu, who gave the hint during the Abuja Business and Investment Roundtable on Thursday, described the contract as illegal.

Yakubu claimed that since Obasanjo did not present the project and its budget to the National Assembly, the current administration would not condone it because of its stand on rule of law.

“For an administration that prides itself in the rule of law, I don’t see how an illegality will be strictly adhered to in the name of continuity,” he said.

The $8bn contract was awarded to Chinese Civil Engineering and Construction Company in 2006 as a turnkey package entailing the design, construction and maintenance of about 1,315 kilometres of standard gauge double track railway line from Lagos to Kano.

In 2007, the contractor received $250m as advance payment for the project.

It was the first phase of the nation’s 25-year railway modernisation project initiated by the then Obasanjo administration to raise the travelling speed of passenger trains to 120-150km/h.

The railway line, which passes through eight state capitals and the Federal Capital Territory, was to be completed within 48 months.

Nigeria has a network of 3,505 kilometres (2,178 miles) of narrow-gauge single-track lines, covering nine states.

Most of Nigeria’s 200 locomotives are, however, down.

The government had said $2bn would be obtained as a soft loan from the Chinese government to finance the project.

Last year, the Minister of Transportation, Mrs. Diezani Alison-Madueke, said the Federal Government had raised an inter-ministerial committee to review the contract and determine how to fund the project.

The Minister of Finance, Dr. Shamsudeen Usman, also said that government might review the terms of the Chinese loan for railway projects.

The minister, who spoke in Washington DC, United States, explained that some of the terms of the loan were of concern to the Yar’Adua administration.

However, Yakubu also disclosed on Thursday that 91 per cent of the Federal Government’s capital budget for 2009 would be spent on infrastructure development because Yar’Adua’s belief in reducing the cost of doing business in Nigeria.

Yakubu, who also hinted that $1.5bn would be spent in 2009 on domestic gas production, said that the Escravos Pipeline would be extended to Umuahia, Ajaokuta, Kano and Nigeria’s border with Niger Republic.

According to him, the planned investment in the gas pipeline is predicated on the belief that availability of gas would transform the nation’s economy.

He said, “The 2009 budget has paraded sufficient allocation for dredging of the lower Niger . There will be rehabilitation of Eastern and Western rail line in Warri to Ajaokuta which will be in 12 months. This is intended to reduce burden on road transportation.

“Regardless of what happens to our export of oil and gas, we are committed to completing these projects. Nigeria ought to be a hub of petroleum products.”

Yakubu added that gas processing plants would be funded by the private sector.

Claiming that Nigerians had a quick-fix mentality, he said that Yar’Adua had taken steps to appoint technocrats as ministers that would drive his seven-point agenda.

He explained that the seven-point agenda was evolved to address the inadequacy of the country’s infrastructure.

The presidential aide said, “This administration did not just stumble on the seven point agenda. It is a well thought-out set of solutions to address micro and macro economic challenges in the country.

“Our problem has for long been lack of competition, with cost of doing business in Nigeria higher than in other places. Businesses have had to provide their own infrastructure. The seven-point agenda is a response to the dilemma.”

On agriculture, the Chief Economic Adviser said less than 50 per cent of the arable land in the country was being utilised.

According to him, the Federal Government plans to increase the land available for agricultural production.

Based on this expectation, Yakubu insisted that growth rate of 13 per cent for 2009 was feasible.

The Supervising Minister of the Federal Capital Territory , Mr. Remi Babalola, who also spoke at the event, said a necessary and sufficient condition for public private partnerships was a well-built infrastructure base.

Babalola said, “We are realigning our economy to compete in the global contest for foreign direct investment in tandem with our Vision 2020 – a vision in which Nigeria seeks to position itself among the top countries of the world by the year 2020.

“We are reforming the art of governance at the FCT, using concepts in modern management of reducing layers of bureaucracy, enhancing productivity and improving service delivery.”

He added that the Yar’Adua administration was forging partnerships with successful cities across the world in order to tap from their experience and upgrade services in the country.

The suspend in the topic of this thread should be changed to cancels because the government has finally cancelled this project in it's entirety.
I would be hesitant to do so since the CEA is still using the equivocal phrase "may" revoke.

However, the CEA's reported rationale is suspect, since the the power to award contracts does not reside with legislature (the National Assembly). The legislature's authority is limited to the appropriation of funds. Accordingly, if the CEA was trying to say that there were no funds legislatively appropriated for the project, then that would be a totally different matter but one which still does not render the contract 'illegal'.

PS: I got the following excerpt from Mr. Obasanjo's 2007 Budget presentaion to the National Assembly (made on October 11, 2006).

FINANCING OF MAJOR DEVELOPMENTAL PROJECTS FROM THE EXCESS CRUDE ACCOUNT

All tiers of government have committed to jointly execute and fund six (6) major developmental projects, with large foreign exchange components. These projects are in three (3) sectors, namely, Railways, Power and Oil and Gas. The projects under each sector and their estimated cost are as follows

Railway

PHASE I: Lagos - Minna - Kano with Minna - Abuja - Kaduna Spur, Standard Gauge Double Track, (150km per hour design Speed) Railway Line - estimated to cost US$8.3 billion in four years.

Power

Niger-Delta Integrated Power Plants (Phase I) - estimated to cost US$3.8 billion; including transmission and provision of gas.
Mambila Hydro Power Project - estimated to cost US$3.2 billion; over a period of four years; and
Combined Cycle for Geregu, Alaoji, Papalanto and Omotosho Power Plants - estimated to cost US$1.7 billion to increase the generation from these facilities by 2,300 MW over the next three years.

Liquefied Natural Gas (LNG)

Equity investment in OK LNG Plant - estimated to cost US$9.8 billion;
Equity investment in OK Pipeline Project- estimated to cost US$2.0 billion; and
Equity investment in Brass LNG Plant - also estimated to cost US$8.5 billion.
These projects are to be jointly funded by all tiers of government from the Excess Crude Account.

We seek your authorisation for the Federal Government‘s share of these major expenditures. Other tiers of government will also seek authorisation for their portion of the spending from their respective legislative arms.

What's now the alternative project to this suspended railway line?

House Faults N2.7 Billion Rail Project Allocation

Abuja — The House of Representatives Committee on Land Transport yesterday raised questions on the plans by the Federal government to spend N2.7billion on the rehabilitation of railway tracks across the country.

The Committee said it does not make economic sense to sink such a fund into a project that would not yield the desired results, adding that it would have been better to construct more modern rail tracks instead of rehabilitating the existing ones that have become worn out over the years.

Chairman of the Committee, Honourable Bernard Udoh, also said that the planned purchase of new locomotives for the country's rail system even before the tracks were rehabilitated was like puting the cart before the horse.

Under the 2009 Appropriation Bill, the Nigeria Railway Corporation is seeking funds for the comprehensive modernisation of 20 locomotive and spares. Other projects in the NRC's budget are N6, 452, 447, 194 fund for the payment of outstanding debt for the completion of Ajaokuta - Warri line to Delta Steel Jetty, Aladja which is about 22km and another N6, 000, 000, 000 for same project being amount for 2009 and construction of station signal and communication for Itakpe/Ajaokuta to Warri line.

Managing Director, Nigeria Railway Corporation, Mazi J.C Nwankwo who appeared alongside the newly appointed minister of Transport, Alhaji Isa Ibrahim before the committee yesterday, told lawmakers that the sum of N2.7 billion was included in the 2009 budget for the projects.

Nwankwo said the allocations to the various rehabilitation projects of the corporation would solve the problems of damaged rail tracks which was contributing to the slow speed of the locomotives. He however admitted that the proposed rehabilitation would not be able to accommodate high speed locomotives but should be executed in order to ease the huge traffic on the roads. The Warri/Ajaokuta rail project, he said, still had about 27km to hit its final destination and pleaded with the legislators to approve the funds that would enable the contractors complete the rail to open up the rural communities and villages along the rail route.

Minister of Transport, Isa Ibrahim while defending the budget for 2009 before the House committee said that the ministry generated internal revenue worth over N31million in 2008.

Also yesterday, the House of Representatives Committee on Information again, rejected the expenditure profile documents presented by the Ministry of Information and Communication with regards to the 2008 budget.

Chairman of the Committee, Honourable Dino Melaye, and other members of the Committee, expressed dismay at the quality of the documents and the presentation made on the expenditure profile and lashed at the ministry's officials for a poor job.

Melaye said that so long as the 2009 Budget is predicated on the 2008 budget, the Committee cannot proceed with the 2009 budget until they have full details of expenditure for 2008. He observed that the ministry of Information was under-funded by the Federal Government but lamented that the desire of the legislature to effect a change was being frustrated even by the indecision and shoddy job done by some of its officials.

He also expressed dismay at the failure of the ministry to include in its proposal the need to complete its unfinished or abandoned projects but rather proposed over N50 million for travels and "generator servicing".

The Committee said that while it would not entertain appropriation for travels, maintenance of generators and miscellaneous for the agencies under the Ministry of Information, it would allocate funds for the completion of some key capital projects such as the Nigerian Television Authority (NTA) Complex to ensure that it was completed during the year.

FG Lifts Suspension on $8.5bn Rail Project
From Onyebuchi Ezigbo in Abuja, 01.20.2009

The Federal Government has rescinded its decision to suspend the execution of the $8.5billion contract for the rehabilitation of the Nigeria Railways.
Minister of Transport, Alhaji Ibrahim Isa Bio, said the government had now decided that the project cannot be abandoned at this stage and as such should be reactivated.

A statement signed by the Assistant Director of Press in the Ministry of Transport, Mr. Kingsley Agha, said government’s policy reversal came after five hours of meeting with the Chinese firm, CCECC, and the consultants handling the project.

The statement further said the change in position followed the recommendation of a team of experts and the ministry’s officials which described the project "as good and of tremendous economic benefit to the country."

The team of experts agreed that while the present narrow gauge rail tracks will not be abandoned, any new track will be the modern, faster and conventional standard guage rail tracks.

A similar committee of experts raised by the ministry under the immediate former Minister of Transport, had faulted the implementation of the railway project on the grounds that the contract did not follow due process, recommending instead that government undertakes the rehabilitation of the existing narrow guage rail line.

The former minister while accepting the recommendations of the committee said there were not enough money to execute the project, considering the fact that the anticipated use of the excess crude money could no longer materialise.

Some members of the House of Representatives Committee on Transport also alleged that contract for the railway project may have been inflated by the last administration.

However, Bio, said his advice will be to re-scope the project and execute it in manageable phases.

The minister explained that only routes with heavy human and cargo traffic but short in distance will be adopted and completed in view of lack of funding, pointing to such routes as Lagos, Ibadan, Kaduna to Kano.

FG Lifts Suspension on $8.5bn Rail Project
From Onyebuchi Ezigbo in Abuja, 01.20.2009

The Federal Government has rescinded its decision to suspend the execution of the $8.5billion contract for the rehabilitation of the Nigeria Railways.
Minister of Transport, Alhaji Ibrahim Isa Bio, said the government had now decided that the project cannot be abandoned at this stage and as such should be reactivated.

A statement signed by the Assistant Director of Press in the Ministry of Transport, Mr. Kingsley Agha, said government’s policy reversal came after five hours of meeting with the Chinese firm, CCECC, and the consultants handling the project.

The statement further said the change in position followed the recommendation of a team of experts and the ministry’s officials which described the project "as good and of tremendous economic benefit to the country."

The team of experts agreed that while the present narrow gauge rail tracks will not be abandoned, any new track will be the modern, faster and conventional standard guage rail tracks.

A similar committee of experts raised by the ministry under the immediate former Minister of Transport, had faulted the implementation of the railway project on the grounds that the contract did not follow due process, recommending instead that government undertakes the rehabilitation of the existing narrow guage rail line.

The former minister while accepting the recommendations of the committee said there were not enough money to execute the project, considering the fact that the anticipated use of the excess crude money could no longer materialise.

Some members of the House of Representatives Committee on Transport also alleged that contract for the railway project may have been inflated by the last administration.

However, Bio, said his advice will be to re-scope the project and execute it in manageable phases.

The minister explained that only routes with heavy human and cargo traffic but short in distance will be adopted and completed in view of lack of funding, pointing to such routes as Lagos, Ibadan, Kaduna to Kano.

This is good news, I heard this on NTA news.