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Nairaland Forum / Nairaland / General / Politics / NLC, Experts Lambast FG Over High Rail Projects’ Cost (1623 Views)
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NLC, Experts Lambast FG Over High Rail Projects’ Cost by Nobody: 1:15am On Jun 05, 2019 |
The Nigeria Labour Congress, the Centre for Social Justice and other economic analysts have lambasted the Federal Government over the high cost of rail projects under construction in parts of Nigeria. According to them, the costs of such projects in other African countries are far lower than what obtains in Nigeria, as they described the development as worrisome and unfortunate. Their reactions were prompted by the recent announcement that Ghana signed a Memorandum of Understating with China Railway Construction Corporation to build a 560km railway line for a contract price of $2bn, while Nigeria is spending the same $2bn on 156km Lagos-Ibadan rail project, which is being constructed by the China Civil Engineering Construction Corporation. Commenting on the development, the Secretary-General, NLC, Peter Ozo-Esan, told our correspondent, “There has been a general worry about cost competitiveness in infrastructural development in Nigeria. Historically, we have always noticed that the construction of roads and the development of other infrastructure in Nigeria cost multiple times more than the cost in other countries and this is worrisome. “There is no doubt at all that rail development is very welcomed and there is a need to invest more. However, this needs to be done in a cost-effective manner so that we get value for our money.” He added, “I have also heard of comparison between what is done in Ethiopia and Nigeria in rail development by the Chinese as well and in every case, the cost is always highest in Nigeria and that is extremely worrisome. The Lagos-Ibadan axis is not a coastal area for you to say it is affected by terrain. “So I think the whole issue of how transparent our budgetary process is and our tendering process and what we pay for infrastructural development need to be visited very squarely if we are to benefit and develop from investments in these areas.” Ozo-Esan noted that those who brought the facts from the international arena for comparison were doing the country a lot of good, adding that the NLC “will stand to support any call for the government to defend the type of figures that they give and the type of cost that they place on this infrastructure.” The Lead Director, CSJ, Eze Onyekpere, described the situation in Nigeria as unfortunate, stressing that the Lagos-Ibadan area was not a coastal area and should not warrant such huge fund, judging by what Ghana would spend on its over 500km railway project. He said, “My first reaction is that there are international benchmark prices for doing kilometres of either roads or rail lines across similar terrains. Once the environment and ecological conditions are the same, it is expected that the cost should be the same. “But if they differ, it may cost more to do it on maybe wetlands and the kind of environment we have in the Niger Delta, compared to if you are doing it on drylands like Abuja. But beyond that, it does appear that what we have in Lagos-Ibadan is not particularly challenging terrain.” Onyekpere added, “It is quite a dry zone and what we understand is happening in Ghana is also the same dry land. So on the surface of it, you will understand that some mischief has happened. The contract must have been over-invoiced or there is corruption and some people may have made so much from it. “So, it is a very crooked situation because we have a closed-door procurement system where due process and value for money are only on paper and have nothing to do with the actual value for money. It is an unfortunate scenario.” A former President, Association of National Accountants of Nigeria, Dr Sam Nzekwe, said the Federal Government failed to thoroughly go through the terms of agreement with China before entering into railway construction agreements. He said, “In many of the agreements between Nigeria and China, our country was not able to thoroughly look at the terms. This is because, in the agreements for the rail sector, you will observe that the machinery, rail tracks and almost every other thing about the rail were given to China. “We’ve noticed that the tracks, bolts, nuts, machines and some good amount of labour are all coming from China. So the Asian country factored everything into the agreements, which our people here in Nigeria did not look at critically.” Nzekwe added, “So technically, Nigeria has paid that loan but she still owes the money. China is coming with everything, as well as raw materials for the projects and there is no local content in the agreements. Our ministers and government got it wrong when it comes to factoring local content in the agreements. “Are you saying we cannot manufacture a good number of things being used for the construction of those rail lines? Why is local content so low in the construction of the rail lines? The ministers and government officials who signed those contracts are all jokers.” Another analyst stated that it was annoying to know that ministers and government officials in Nigeria failed to scrutinise the details of the agreement with China for the various railway construction projects. “I’ve seen that story about Ghana and what it signed with the Chinese construction company and it is sad that we are spending such amount for a similar project that is far less than what is to be constructed in Ghana,” the analyst, who preferred not to be named due to his level of involvement with the government, stated. “Our politicians are really failing us and this is so annoying. We hope there will be some form of probe of this issue,” the analyst added. It was recently reported that Ghana’s moribund railways’ infrastructure received a reconstruction funding of $2bn following the MoU signed by Ghana’s Minister of Railways Development and CRCC, a Chinese construction conglomerate. However, Ghana’s Minister of Railway Development, Joe Ghartey, said the MoU with the China Railway Construction Corporation Corporation (International) Nigeria Limited (CRCC-Nigeria) has been cancelled “for breach of confidentiality.” Ghana had signed an MoU with CRCC- Nigeria for the construction and rehabilitation of a 560-kilometre standard gauge railway line. However, after a report in an online newspaper, TheCable, comparing railway contract costs in Ghana with Nigeria’s, the minister came under pressure to do “damage control.” In a statement sent to TheCable on Monday, Ghartey was said to have acknowledged that the ministry signed an MoU with CRCC-Nigeria. TheCable had reported that CRCC offered to rehabilitate and construct a 560-kilometre standard gauge railway line for Ghana at $2bn, with terminals at Aflao and Elubo. “Messrs CRCC-Nigeria expressed interest in supporting the ministry to develop and modernise Ghana’s railway network, particularly the Trans-ECOWAS line, which runs along the coast between Aflao, on the border with Togo, and Elubo, on the border with Cote d’Ivoire,” the statement read. “The purpose of the MoU is for CRCC-Nigeria to undertake feasibility studies through the use of independent consultants. “CRCC-Nigeria is responsible for verifying the project cost as estimated by the feasibility studies and also raise capital to finance the project.” However, the minister said his ministry had yet to respond to a proposal by CRCC-Nigeria to establish assembly plants for building locomotive coaches and wagons. https://punchng.com/nlc-experts-lambast-fg-over-high-rail-projects-cost/ 1 Like 1 Share |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Nobody: 1:16am On Jun 05, 2019 |
My brah David was right
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Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by NigeriaIsDoomed: 1:31am On Jun 05, 2019 |
ChiefkeefGB4:I swear! Criminals are looting the zoo dry 2 Likes 1 Share |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Bizlifelines201: 1:51am On Jun 05, 2019 |
ChiefkeefGB4:I have been seriously worried since this news about the cost of 156km the Chinese charged Nigeria is the same it charged Ghana for 560Km and the trains are to be assembled in Ghana got to me! This is ridiculous and EFCC should please move in to save Nigeria from this possible rip off. In fact, the President should not appoint Mr Amaechi and assign him to that ministry again! I just don't get how we got very horrible unpatriotic people to take the driver's seat when strategic issues of the country are at sake. Just when we are yet to get over the malabu case, we were faced with MTN nonsense and now dealing with the alleged case of overinflating of contracts paid for on loan!If the President would have to beg Ghanaians to help us negotiate, he should do so because these unpatriotic elements keep embarrassing the rest of us. A technical committee including Ghanaian and Ethiopian consultants should be engaged to review all these Chinese loan funded projects. All of them should be compared to the cost in countries with similar terrains. Wow!!This is just insane!! 5 Likes 1 Share |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Nobody: 2:10am On Jun 05, 2019 |
NigeriaIsDoomed:
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Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by AstroG: 3:00am On Jun 05, 2019 |
It would be better if Nigeria is Sold,and the Money realized from the Sale is Shared Equally to every citizen of this country... TUFIAKWA!!...NIGERIA IS DOOMED FOR DESTRUCTION 3 Likes 1 Share
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Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Nobody: 3:10am On Jun 05, 2019 |
AstroG:
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Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Nobody: 3:17am On Jun 05, 2019 |
Bizlifelines201:Nigerian leaders don't have a reputation for the being the most fantastically corrupt in the world for nothing. This is the way they have been behaving since 1960. 3 Likes |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by JudgeOGBUNABALI(m): 3:34am On Jun 05, 2019 |
Thieves 1 Like |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Nobody: 3:41am On Jun 05, 2019 |
NigeriaIsDoomed:100 |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by nabiz(m): 3:51am On Jun 05, 2019 |
Amechi! Amechi!!, how many time have I called you? Don't you have a shame 1 Like |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Nobody: 4:24am On Jun 05, 2019 |
In essence... $1.2bn worth of overinflated rail contract!! This country is just dead.. 3 Likes |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Nobody: 4:49am On Jun 05, 2019 |
Hmm....it seems the fake news story has taken a life on its own 1. Ghana did not sign a contract with CRCC-Nigeria to build a railway 2.Ghana did sign a contract...with a consortium of European countries to build a 360km Eastern railway at 2.2 bn USD. 3. Here is the report...
4.Ghana is also building something with a Chinese company....a western railline (100km)...The Chinese company is...well.. An agreement has been signed between the Ghana Railway Development Authority (GRDA) and China Railway Wuju Group Corporation for the continuation of the development of a new Standard Gauge Western line. 5.CRCC 's projects in Africa, according to its Wikipedia page...are in Angola, Mali, Nigeria and Senegal. It's subsidary in Nigeria is CCECC(China Civil Engineering Construction Company). 6. And now the Sun is calling it fake news... The MoU was signed by the officials of Ghanaian’s Ministry of Railway Departments and Messrs CRCC. I.E...CRCC was supposed to do a report...but it has not submitted anything.... |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Nobody: 5:18am On Jun 05, 2019 |
Bizlifelines201: Guy, you think that Amaechi retained the position of APC campaign DG for nothing!? I laugh at some of you who think that Buhari is fighting corruption. Please, check how much of Abacha loots have been recovered so far. Where was he dipping his hands on to fleece the country then? PTF, and who was in charge? Your President! If Abacha was still alive, you and I would not have known about all the loots. 3 Likes |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Nobody: 5:24am On Jun 05, 2019 |
Esseite: |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by aolawale025: 7:13am On Jun 05, 2019 |
Something definitely not right. Nigeria paying too high compared to similar projects elsewhere |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by helinues: 7:15am On Jun 05, 2019 |
And the main opposition remain muted about the inflated projects. Where are they when needed? |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Shikini: 7:54am On Jun 05, 2019 |
Most Zombies are fools Kickbacks, bribes have actually increased under Buhari Amaechi's Zanku/Legwork dance on Lagos - Ibadan railway are likely for his multi-billion kickbacks. But gullible zombie followers are too phoolish to decode 2 Likes 2 Shares |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by CanineOfJackal: 8:12am On Jun 05, 2019 |
helinues:Are you really okay? You criticize pdp when they come after the government and now you want them to fight for you. Get out from the internet because you talking poppycock |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by helinues: 8:22am On Jun 05, 2019 |
CanineOfJackal: Who con beat you now? |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Nobody: 8:46am On Jun 05, 2019 |
Shikini:Amaechi is employing the same trick he used for the inflated monorail project in Rivers State when he spent about $400 million out of $1bn budgeted for the project on an 6.5km without completion; that's about $ 153m per km.. World's costliest rail system, This project ended up abandoned after his cronies had been paid about $300m for " consulting fees" Ethiopia built ultra-mordern 34km rail sytem at $475m and it's working! That's about $13.9m per km... Let's stick to these numbers first. Right next door to Rivers, in Calabar Cross River State, Intamin partnered with the government there to build a monorail system for N5 Billion (36 million dollars)! The monorail project in Rivers, is a system designed by Intamin, and is similar to the monorail that was constructed in Moscow Russia for 240 million dollars by the same monorail manufacturer. The Calabar system is reportedly already functioning and is now conducting test runs.The system in Calabar is very similar to the monorail in Rivers state which cost 1/8th the amount that was spent in neighboring Rivers State on their monorail system that is not even working! The EFCC, if they were not politically compromised, would have conducted an extensive investigation into the Minister, given the amount of power and influence that he now currently has. Amaechi loves money that explains the inflated Lagos to Ibadan railway contract. 1 Like
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Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Obere4u: 8:48am On Jun 05, 2019 |
Before you put cost of construction into consideration, try and see the feasibility report... So many things makes cost of thing higher than others... Let's not jump into conclusions... We know that the money is inflated though but it might not be as high as we think |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by mrvitalis(m): 8:50am On Jun 05, 2019 |
This is where u need NLC to go on strike and protest but no one would |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by emelda86(f): 8:53am On Jun 05, 2019 |
CanineOfJackal: |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by wingmanII: 9:02am On Jun 05, 2019 |
APC synonymous with corruption and impunity. They may even be worse than PDP. The transport minister hates money so much he would rather stash it away. An independent probe of this hypocritical government will shock Nigerians to the marrow. 1 Like |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Nobody: 9:11am On Jun 05, 2019 |
wingmanII:
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Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by mrnigerdelta: 10:07am On Jun 05, 2019 |
lootocrats |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by gratiaeo(m): 10:59am On Jun 05, 2019 |
wingmanII:APC is worse than PDP. Buhari is most corrupt President in Nigeria 1 Like |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by theenchanter: 11:17am On Jun 05, 2019 |
Nigerians love giving themselves headache over matter of less magnitude, which is due to unsubstantiated facts. Lagos-ibadan is not even $2b but $1.5b to start with. |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by RichBoy247: 12:25pm On Jun 05, 2019 |
Maybe Buhari, Rotimi Amaechi and Raji Fashola should just have shared the money and build nothing just the same way Obasanjo and PDP shared $16 power money. NLC is mad. |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Shikini: 2:33pm On Jun 05, 2019 |
Sad |
Re: NLC, Experts Lambast FG Over High Rail Projects’ Cost by Bragalane: 2:54pm On Jun 05, 2019 |
Look at foolish PDP supporters mastubatingbiver foolishness upon all the scream that Lagos-Ibadan rail is not $2 billion but less than $1.6 billion.
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