•Project ready in 2030
From Isaac Anumihe and Jude Idu, Abuja
As the Lagos-Calabar coastal road project kicks off with the demolition of property to create right of way, arrangements have also been concluded for the railway component of the project.
Daily Sun gathered that the rail component of the coastal road will gulp a whopping $11.17 billion, with a six-year deadline.
The proposed route alignment of the coastal railway would go from Lagos to Shagamu, Shagamu to Ijebu-Ode, Ijebu-Ode to Ore, Ore to Benin City, Benin to Sapele, Sapele to Warri, Warri to Yenagoa, Yenagoa to Port Harcourt, Port Harcourt to Aba, Aba to Uyo, Uyo to Calabar, Calabar to Akamkpa to Ikom, to Obudu Ranch, with a branch line from Benin City to Asaba, Onitsha Bridge and then Port Harcourt to Onne Deep Seaport.
Daily Sun gathered that there are six components of the coastal rail project and only one has been financially secured.
A director in the Ministry of Transportation, who pleaded anonymity, disclosed that “the entire rail component of the project is now being handled by the works ministry. We can’t even tell you the contractors when the other segments of the loan have not been secured. Mind you, the initial approval for the coastal railway was approved by Buhari’s administration.”
Asked to name the contractor for the first segment of the loan, the ministry official kept mum.
It was gathered that $1.8 billion of the contract sum would come as a loan from China, while the Federal Government would provide $500 million as a counterpart fund.
Meanwhile, Coordinator of the Coastal Rail Project, in the Department of Rail Transport Services, Ministry of Transportation, Engineer Unwana Ndon, confirmed to Daily Sun that funding has been the problem of the coastal rail project delay. He added that efforts are being made to attract interested partners.
“What I have to say here is that the coastal rail funding has been dragging for some time now and we are still talking with the Chinese civil Engineering construction company (CCECC).
“However, I can say that the CCECC has started rehabilitation of Narrow Guage from Port Harcourt to Enugu,” he said.
He further stated that the project would go into full gear if private partners get involved.
Former minister of Transportation, Chibuike Amaechi, had explained that the rail line would traverse Lagos, Delta, Anambra, Benin, Rivers and Cross River states, with connections to the central rail line that goes to Abuja.
He said: “The government has approved for us to seek a loan of $1.8bn to start work on the coastal rail. The coastal rail is from Lagos to Calabar. So, we are taking the segment that starts from Port Harcourt to Warri to join the central line that goes to Abuja.
“And, then, another segment that starts from Benin to Onitsha. But as it is going to Onitsha, it will join the central line again at Agbor. The Port Harcourt-Warri line will join the central line at Warri.
The Benin-Onitsha line will join the central line at Agbor. They are all part of the coastal rail line, which is about $11.1bn.”
He added: “There are other projects that are considered for construction. The one that we just got approval for from the cabinet is the central line, which begins from Abuja through Baruo, Itakpe and Lokoja; that has been approved; with a seaport to Warri (also) approved.”
The Federal Government is expected to give a sovereign guarantee to enable them to get a quick loan. In turn, the contractor will give us a Performance Guarantee . The performance guarantee means that ‘since you have concessioned this project to me after the completion, I will run the seaport and the rail line in such a way that I will pay back in 20, 30 or 40 years time, depending on the agreement reached.’