Federal Ministry of Transportation Press Statement

Setting the Records Straight: The Memorandum of Understanding (MOU) between the Federal Ministry of Transportation and MPH Rail Development (UK) Limited for the Proposed Port Harcourt-Calabar-Enugu-Abuja Standard Guage Rail Project.

——-

The attention of the Federal Ministry of Transportation (FMT) has been drawn to emerging comments and commentaries by certain persons (especially on social media) concerning the status and implications of the Memorandum of Understanding (MoU) signed on 12th February, 2024 by the Honourable Minister of Transportation (HMT), Senator Said Ahmed Alkali on behalf of the Ministry with Messrs. MPH Rail Development (UK) Limited, a United Kingdom-registered company with Nigerian and foreign shareholding.
 
2. For clarity, a memorandum of understanding, or MOU, is a non-binding agreement that states each party’s intentions to take action, conduct a business transaction, or form a new partnership.  It is not a legally binding agreement. It provides only a platform for further engagement, discussion, scrutiny, and the provision of required guarantees by the parties to reach an agreement if the parties are satisfied.
 
3. The MoU in question arose from an unsolicited proposal presented by the British African Business Alliance (BABA), an Association based in the United Kingdom with interest in business in Africa. Its proposal was initially submitted to the Ministry on 27th August, 2019. As required, the proposal (Outline Business Case) was submitted to the Infrastructure Concession and Regulatory Commission (ICRC) on 8th December, 2023. The major attraction of the proposal is BABA/MPH’s initiative to achieve 100% private sector funding for the project ‘with no loans or debt to the Nigerian Government or any of its agencies’, as captured in Article 3.3 of the MoU. The Regulatory Commission on 27th December, 2023 granted approval and issued a conditional OBC Certification. It is pertinent to note at this juncture, that COVID-19 was a major contributor to the time lag between initial proposal and the ICRC OBC Certification.
 
4. Messrs. MPH Rail Development (UK), is the company incorporated by BABA, as the Special Purpose Vehicle (SPV) to ‘deliver’ the project. It must be emphasized that a Company to be used for such a purpose is usually new with nominal shareholding to allow for stake holding by parties to the project at theinvestment stage.
 
4. For the avoidance of doubt the following are the major terms of the MoU:
• The primary purpose of the MOU, is to provide a platform for further discussion between parties to ascertain the possibility of executing the project or otherwise. It does not create a legal or contractual agreement neither did it commit the Federal government in any way;
 
• Article 3.3 of the MoU affirmed that BABA/MPH’s initiative is to achieve 100% private sector funding for the project ‘with no loans or debt to the Nigerian Government or any of its agencies’;
 
• A fundamental deliverable under the MoU is for MPH to design a funding and implementation model and submit same to the Ministry within 90 days of the MoU for further consideration and scrutiny;

• MPH, within the above-stated 90 days period will equally submit its Programme of Action to demonstrate its achievement of all the preconditions highlighted by ICRC, before further engagement with Government; and

• The MoU also sets up a bilateral Technical Committee to monitor the Company’s commitment towards achieving the above milestones and ensuring that the project objectives are well within sight.

5. The Ministry therefore considers it expedient to put out this Statement to reaffirm as follows:
(i) This initiative is still at its preliminary stage. As the proponent, MPH is expected to submit within 90 days of the signing of the MoU evidences of commitment by potential financiers, Environmental and Social Impact Assessment Report, Financial Model and Programme of Action, Full Business Case Study Report, and a Comprehensive Feasibility Study Report;
(ii) It is the submission of the above listed documents and the outcome of their evaluation that will determine the desirability or otherwise of the proposal;
(iii) ICRC as the Regulator of PPP is fully and duly in charge of the oversight of this process;
(iii) The MoU therefore constitute only the beginning of a long process that will lead to the project after due diligence and scrutiny by the Ministry and other appropriate authorities; and
(iv) The nascent and nominal share value of the SPV company (Messrs. MPH Rail Development) does not diminish the plausibility of the business proposal at this early stage.
 
6. For the avoidance of doubt, the Ministry wishes to reassure Nigerians and the general public that it is committed to discharging its statutory mandate towards the realization of the “Renewed Hope Agenda” of Mr. President to deliver efficient, affordable and sustainable transport infrastructure for the country with utmost diligence and fidelity. It therefore urges the pubic to discountenance the insinuations, cynicism and aspersions cast on the said MoU which is neither a legal agreement nor a binding commitment on the Federal Government.

Signed, Director Press and Public Relations
Dated 16th March, 2024.
FEDERAL MINISTRY OF TRANSPORTATION

Previous Thread
https://www.nairaland.com/8032098/ikuforijis-company-gets-multibillion-naira#128958435

The Edo state governor is almost completing his second tenure and yet, all the MOUs he signed with different investors during his first term in office have not been translated into reality , an MOU is like a promise made by a man to a woman when he is enjoying the "do", the man may not even remember his promises when he comes to himself

Madness, nepotism, mind blowing bold corruption and criminalities flying all over the place.
This tinubu criminal mandate will destroy democracy. Take this to this bank.

When they are caught defrauding the country and its citizens of their common wealth, they come up with watery rebuttals and defenses meant to deceive their gullible fellowers.

awarding rail contract to a company that has a total asset of 100 pounds
Naija will not cease to amaze me

This country need Ijaw massage

Noted.

• The primary purpose of the MOU, is to provide a platform for further discussion between parties to ascertain the possibility of executing the project or otherwise. It does not create a legal or contractual agreement neither did it commit the Federal government in any way;

Remember this fact when any politician or cheerleader tells you this as an achievement.

H

We know what an mou is. Kindly leave that and explain to us why an mou was signed with a company that has a networth I can afford to buy 10 times over.

Again I hope you masses see how you are constantly fooled by govts? Some daft apc miscreants will still come here to defend this. Surprisingly I didn’t see anyone defend it on the thread that exposed the fraud. But if you check the thread announcing the mou you’ll see a lot of them mastubating over how brilliant it was.

This one really dealt them a blow.

Even nlpolicewoman aka dead meat griller was shocked at how he was fooled but still managed to keep shut and is waiting patiently for a thread he can type the usual Nigeria will be great again after reading news like that of rice pyramids or cng buses or wage increase.

And to the obidients who think Obi is a saint or would have salvaged this country your own foolishness is amazing. Go and read about NEXT…

All politicians are the same irrespective of party.
That is why for 6 years NASS allocation has risen over 100% but minimum wage is still 30k. We have LP senators who have joined in chopping the largesse now. Nothing will be done about that.

Keep fighting yourselves based on tribe and religion while the politicians are united in looting and offering explanations like the one on this thread to idiots like you.

Nigerian government had turned this nation to a playground thanks to the idiots that voted these folks in.

oz4real83:
The Edo state governor is almost completing his second tenure and yet, all the MOUs he signed with different investors during his first term in office have not been translated into reality , an MOU is like a promise made by a man to a woman when he is enjoying the "do", the man may not even remember his promises when he comes to himself

Continue dey support rubbish.

Smh

They still get mouth to talk?
In saner climes the transport Minister would have long resigned by now

You go explain tire.

When you catch a thief, the only to confirm it's authenticity is -Stories/Lies.

You need 100lies to cover one 1lie

Memorandum of Understanding is not a binding agreement indeed. So, what is the binding agreement?

Awon ole jati jati

Una go explain tire.

bennybuhari:
awarding rail contract to a company that has a total asset of 100 pounds
Naija will not cease to amaze me

100 pounds? ₦200k company to handle billion dollar business, MOU or what ever they call the name.
The say it is just MOU, ie for photograph. Nigeria billion dollar railway abi road is now a photograph.
FOTO NO BE JUJU BE DAT

Another mafab loading, yoruba and corruption, which serious country will award a contract of this magnitude to a ghost none existing offshore company. Yoruba and Fulani, are you people not tired of damaging Nigeria?, naira land oya bann me.

Ok

Mou n Spv

Brace yourselves
8 years of “paroles”

Obidients are illiterates. All they're looking for is bad news

Umri:
Mou is until materialized, is what happens to the camera and a mere relationship between two

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Pay On Delivery

Drop us your Company name
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Ignorant negro.

Benwallt:
Obidients are illiterates. All they're looking for is bad news

While i agree with you that there are indeed really daft obidients you are not much different from them. You have seen clear evidence of how govt fools you but that doesn’t bother you. You are more concerned about idiots who also reason like you.

Feintline:
Madness, nepotism, mind blowing bold corruption and criminalities flying all over the place.
This tinubu criminal mandate will destroy democracy. Take this to this bank.

Lol! Try to read and understand

Black man sef

I knew it was all farce and void shit from obidients lunatics who don't understand simple meaning of "MOU".

Signing MOU with you does not mean I'm given you a contract.

I knew garbage was coming out as damage control...

zombies are gullible and easily deceived

see the one above me that is yet to have a decent meal in weeks..
defenders of corruption and bad governance..

They even said there was nothing like Budget padding... Nigeria is cursed, i swear