This Day (Lagos)

Nigeria: FG Suspends $3.8 Billion Rail Contract

30 October 2008


Lagos — The Federal Government has suspended the $3.8 billion railway modernisation contract it awarded in 2007, to the Chinese Civil Engineering Construction Corporation (CCECC).

This was made known yesterday in Lagos, by Coordinator of the project, Mr Chi Hong Bing, when the Senate Committee on Land Transportation, led by its Chairman, Garba Lado, visited the project site.Bing showed Lado a copy of the suspension letter sent to the CCECC through the Federal Ministry of Transportation, but did not give reasons for the suspension.

Fielding questions from reporters on the development, Lado condemned the contract, saying the execution was yet to start.

"There was no record before the Senate indicating that the contract was given due process; this is the first time the committee is hearing about the suspension.

I want to believe that it is because of the various accusations from different quarters that the company is not serious about the job.

"From our own assessment, I do not expect anything positive, because the last time we came here, we met similar equipment.It is like nothing is done here; we want action and progress after advancing the company with $2.5 billion," he said.

Earlier while addressing management staff of the Nigerian Railway Corporation (NRC), Lado alleged that a cabal was behind the inefficiency of the rail system in the country.

He said an effective rail system was vital to the development of any nation, and vowed to frustrate the activities of the cabal.

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