DESPITE the promise by the Federal Government to revamp rail transportation, the sector may remain in a comatose state.

This is because unfolding developments not only threaten the establishment of new railway routes but also the modernisation of old ones planned for the country’s six geo-political zones.

One of the challenges facing the successful rehabilitation of the rail sector is the issue of high consultancy fees requested from the Ministry of Transport by both expatriate and local firms commissioned by the government to offer various specialised services in the critical transport sub-sector.

Another major threat is the paucity of funds. For instance, the allocation of N52,331,974,638 to the Federal Ministry of Transport in the 2013 budget is insignificant. It is lower than last year’s N54 billion, which was even said to be inadequate to cater for the entire ministry’s capital projects.

An international rail transport consulting company, CPCS Transcom, Siraj Nig Ltd, CrestHill Engineering Ltd and TEAM Nig Ltd are among the leading companies currently providing Nigeria with different consultancy and feasibility services believed to be essential to the establishment of new railway routes as well as the resuscitation of the existing rail system.

The Guardian, however, learnt that these feasibility consultancy services come at a huge cost to the ministry despite the fact that such hefty bills do not themselves guarantee the completion of projects in the sector.

For instance, to carry out feasibility studies for a standard guage line spanning Lagos-Ibadan, Osogbo-Baro-Abuja, and covering about 615km high speed rail track, CPCS Transcom is to be paid a total of N284,562,603.00.

Siraj Nig Ltd, according to government records, requests N443,154,907.11 as consultancy and feasibility studies cost for a 533 km standard guage line covering Ajaokuta (Eganyi)-Obajana-Jakura-Baro-Abuja, with an additional one line running through Otukpo from Ajaokuta.

It was learnt that CPCS Transcom is to be paid N334,016,907.84 to carry out another new railway routes feasibility studies. Among other things, the studies will be on the peculiar area soil for the purposes of setting up a coastal rail line in the Niger Delta. The 673km project covers Benin-Sapele-Warri-Yenagoa-Port Harcourt-Aba-Uyo-Calabar-Akampa-Ikom-Obudu Cattle Ranch.

Team Nig Ltd, which is expected to carry out feasibility studies/consultancy for standard guage line from Zaria-Kaura Namoda-Sokoto-Illela-BeninKoni (Niger Republic) covering 520km requires N214,560,920.00 for the job.

The company alone is saddled with three separate consultancy services worth over N600 million in projects across various locations. The second involves feasibility studies/consultancy for a 300km East-West standard guage rail line, covering Lagos-Sagamu-Ijebu-Ode-Ore-Benin City. This costs N165,310,275.00. The third of a feasibility/consultancy job awarded to Team Nigeria Ltd is for a 500km standard guage line covering Benin-Agbor-Onitsha-Nnewi-Owerri-Aba with additional lines from Onitsha-Enugu-Abakaliki at a cost of N226,816,661.63.

CrestHill Engineering Ltd is to carry out feasibility studies/consultancy for a 280km standard guage rail line in Eganyi (near Ajaokuta)-Lokoja-Abaji and Abuja for N144,003,024.00.

Other new rail routes’ feasibility studies expected to be embarked upon by the Federal Government this year include a standard guage line for Port Harcourt-Aba-Umuahia-Enugu-Makurdi-Lafia-Kuru-Bauchi-Gombe-Biu, and Maiduguri.

Feasibility studies are also planned for a standard guage line for Ikom-Obudu-Ogoja-KatsinaAla-Wukari-Jalingo-Yola-Maduguri. Others are the Kano standard guage line covering Nguru-Gashua-Damaturu-Maiduguri-Gamboru-Ngala, Illela-Sokoto-Jega-Yauri-Makera.

Till date, Nigeria has only two major rail lines: the one connecting Lagos on the Bight of Benin and Nguru in the northern state of Yobe; and the other connecting Port Harcourt in the Niger Delta and Maiduguri in the north-eastern state of Borno. Over N100 billion has been expended as budgetary allocations to the rail transport sector alone in the last four years.

Pledges by successive administrations in the past to revive the critical rail transport system have failed to yield enduring results, as proposed new tracks have never been completed, while the rehabilitation of tracks and coaches has become something of a yearly ritual for the government in power to take money from the treasury.

Experts warn that except concrete steps are taken to monitor contractors to ensure compliance with budget specifications, the dream of having a re-invigorated rail transportation may not materialise.

Meanwhile, a breakdown of the yearly budgetary allocations to the railway transport system in the past four years shows that in 2012, a total of N20.3 billion was approved for the Nigerian Railway Corporation (NRC), out of which N16.3 billion was earmarked for capital expenditure. It was to rehabilitate the Jebba-Kano, Port Harcourt-Makurdi-Kaduna, Kuru-Maiduguri and Zaria-Kaura-Namoda rail tracks, as well as to procure and rehabilitate rail wagons, coaches and tanker wagons.

In 2011, N29.6 billion was budgeted for the construction and rehabilitation of most of the already captured rail tracks, out of which N5.5 billion was set aside for the construction of Ajaokuta-Warri rail line.

Statistics also show that N31 billion ($207 million) was approved on a special request in the supplementary appropriation bill of 2010 for the construction of Lagos-Ibadan rail lines.

In 2009, N23.3 billion was budgeted for rail transport, out of which N20.7 billion was reserved for capital projects that included the rehabilitation of 120 coaches and wagons, rehabilitation of the Ajaokuta-Warri rail line, which was also catered for in 2011 budget.

To remedy the critical condition of the nation’s rail transportation, the Federal Government has sought to privatise the NRC. Under the privatisation plan, three separate concessions of between 25 and 30 years would be granted to private sector companies to run railways in the western, central, and eastern parts of the country.

As of today, the construction of standard guage lines under the Federal Government’s mordernisation scheme of the railway system is ongoing. The construction of Lagos-Ibadan 180km standard guage line is said to have begun at a cost of $1.53 billion. The contract was awarded to CCECC Nig. Ltd. The Itakpe-Ajaokuta-Warri standard guage line covering 274km has been awarded to Julius Berger at a cost of N33.1 billion. Also, the Lagos-Kano mordernisation rail project has been awarded to CCECC Nig. Ltd. at a cost of $8.3 billion covering 1,342.50km, out of which $257.4 million has been paid by the Federal Government.

A former Head of State, the late Gen. Sani Abacha, awarded about $500 million (N79 billion) rehabilitation contract aimed at resuscitating the Lagos-Kano rail line. Former President Olusegun Obasanjo awarded a contract for the same Lagos-Kano rail line for $8.5 billion (N1.34 trillion). Yet, the completion of these and other key railway projects across the country remains to be seen.

The ministry early in May had its 2013 capital budgetary allocation slashed by about N24 billion by the Senate. President Goodluck Jonathan had in the 2013 appropriation announced a total of N52.3 billion allocation to the ministry, which oversees the NRC, Nigerian Ports Authority, Nigerian Maritime Administration and Safety Agency and National Inland Waterways Authority, among others.

The Minister of Transport, Idris Umar, said that although N49.6 billion was approved as capital expenditure for the ministry, only N26 billion was released to it.

http://www.ngrguardiannews.com/national-news/129768-how-high-consultancy-fees-others-may-mar-rail-transports-revival