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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!
 

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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.
 

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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. :eek:hno::eek:hno:
 

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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.
 

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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!!!!
 

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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
 

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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.
 

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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.
 

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Discussion Starter #11
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!
 

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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. :eek:hno::eek:hno:
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
 

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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).
 

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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.
 

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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
 

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: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.
 

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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.
 

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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!:eek:kay:
 

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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.
 

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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?
 
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