NBA Floors Ministry In $1.96bn Rail Project Probe

The Federal Ministry of Transport has responded to a Freedom of Information (FOI) request by former 2nd Vice-President of Nigerian Bar Association (NBA), Mr Monday Ubani, and Lagos-based lawyer, John Nwokwu for detailed information of the $1.96billion Kano-Niger Republic rail project.

Ubani and Nwokwu had last month sought details of the controversial rail project using the FOI Act, insisting that Nigerians deserve to know, amongst other things, the economic benefits of the project, including the funding mechanism.

The ministry, last week, responded to the demand, and gave more details of the project, and insisted that the actual cost of the project was $1,959,744,723,71 inclusive of 7.5 per cent VAT.

It also confirmed that the track length of the rail was 378km starting from Kano–Danbatta–Kazana–Daura–Meshi–Kastina–Jibiya–Maradi (Niger Republic) with a branch line to Dutse in Jigawa State.

It also confirmed that only 20km of the track length was within the Niger Republic while 358km was within Nigeria.

The MoT response reads, “Mota-Engil Africa in line with the ICRC guidelines and Public Procurement Act, 2007, was recommended as the preferred bidder for the project having been ranked first for submitting an excellent response to the RFP, and providing all the required information.

On budgetary allocation for the rail project, the ministry claimed in its response that the project was to be 100 per cent funded by Messrs Mota-Engil Africa under an Engineering, Procurement, Construction, and Financing (EPC+ F) model through a combination of lenders from Export Credit Agencies (ECA) and commercial facilities backed by a sovereign guarantee.

It, however, failed to provide any Memorandum of Understanding (MoU) or agreement between the ministry and Mota-Engil.

Enumerating the economic benefits of the project, the ministry had claimed that its study estimates a total cost of road accidents saved per year was $57,224,095.

Other economic benefits, according to the ministry, include saving from greenhouse gases reduction, saving in road maintenance and promotion of Intra Africa Trade.

Ubani, in a statement, commended the unusual timely response of the ministry.

He, however, added that he would study the response along with his partners to fashion out the best possible response, as Nigerians deserve the best return on tax payers’ money from their leaders.

However, the method of funding and the liability of the funding on Nigerians, to him, appears suspicious.

According to him, the contract papers were not provided by the ministry in clear compliance with the Freedom of Information Act, and wondered why the ministry would be hiding such public documents from Nigerians, if they had nothing fishy in their cupboard.