General Electric $2.7 Billion Rail Concession
proposal; Amaechi updates Senate Committee on Land Transport
In what initially appeared to be a battle of
supremacy between The Senate Committee on Land Transport and the Honourable
Minister for Transportation over the planned Concession of the Narrow Gauge
rail network across the country, the interest of Nigerians eventually became a
common ground when the Honourable Minister appeared before the committee under
the able Chairmanship of Senator Gbenga
B. Ashafa.
The Senate committee had vide a letter dated 13th
November, 2017 invited the Minister to brief the committee on the effect of the
planned concession on the activities of the Nigerian Railway Corporation, the
future of the staff of the Nigerian Railways and most importantly the effect of
the concession on the budgetary provisions for the narrow gauge rail lines when
same is handed over to General Electric.
In his opening speech, Chairman of the Committee,
Senator Gbenga Ashafa stated that “According to reports
by the News Agency of Nigeria (“NAN) in Lagos on Saturday, 11th November 2017
the Honourable Minister was reported to have stated that General Electric (GE) was
would be investing the sum of $2.7 billion on infrastructure, Operation and
Maintenance (O and M) of the entire narrow gauge lines concession. Also, the
Honourable Minister was reported to have stated further that once the concession agreement with General Electric is concluded, the
Nigeria Railway Corporation will hand over the affected rail lines to General
Electric.”
Ashafa at the meeting today expressed that the
meeting became necessary when it became obvious that the Senate Committee on
Land transport being the supervisory Senate Committee of the Ministry of
Transport and representing the interest of millions of Nigerians was not being
carried along. He also expressed worry over the fate of the NRC worker’s
vis-a-viz this concession.
The Hon. Minister, in his response began by
apologizing to the Committee for not bringing the committee up to speed earlier
than now. He however clarified that no agreement had been signed yet concerning
the concession with General Electric. He stated further that what was imminent
was the signing of an interim work schedule (Interim Phase) which involves
General Electric investing the sum of $45 Million to carry out some
rehabilitation and repair of the track infrastructure amongst other things
before the signing of the main concession agreement.
As regards the future of NRC workers the Minister
of Transport stated “the NRC Staff would remain employed by the NRC following
the commencement of the concession. However, NRC Staff have expressed a desire
to be paid their full entitlements and disengaged prior to the commencement of
the concession. This approach would put
a significant upfront liability on the Federal Government. The stated
preference of the Ministry/NRC is to retain all the staff in NRC except for
staff being transferred to the concessionaire.”
The Senate committee advised the Ministry to tread
carefully with respect to the issue of the workers to avoid a repeat of what
happened with the PHCN staff which was eventually fraught with series
of claims and counter claims from disengaged employees.
At the end of the meeting Ashafa cautioned that the
meeting should not be viewed as a witch- hunt exercise, but rather as an avenue
for both the committee and the Ministry of Transport to be on the same page as
to the concession agreement in order to present a unified front in support of the
President Buhari Administration. Amaechi on his part promised that the final
agreement would not be entered into without the Senate Committee on Land
Transport being duly carried alomng.
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