Contract, awarded by Nigeria and Ghana to a Chinese construction conglomerate for the building of rail lines at $2 billion, shows the former with what looks like ‘inflated’ kilometres while the latter has less kilometres for the same job has raised serious concerns in different quarters, findings by Straightnews have shown.
Findings show that in 2016, Nigeria and CCECC, a subsidiary of China Railways Construction Corporation (CRCC), signed a $2 billion agreement to build a 156-kilometre railway line between Lagos and Ibadan, whose ground breaking ceremony finally took place in March 2017.
Pundits reason that Nigeria and Ghana have the same vegetation and move from the coastline to the hinterland. The cost of living has great similarities which account for the large presence of many nationals of both Anglophone countries in each other’s territory.
However, Ghana’s Minister of Railways Development and China Railways Construction Corporation (CRCC), the leading Chinese construction conglomerate signed a Memorandum of Understanding (MoU) to build a 560-kilometre railway line for $2 billion contract on March 21, 2019.
A breakdown shows that Nigeria spent $3.5 million per a kilometre on railway line, while Ghana will be spending $1.2 million per kilometre in building similar rail tracks in Ghana, Straightnews gathered.
Analysts believe that Nigeria spent same amount on fewer kilometres while Ghana will spend same amount on her project with more kilometres and better appurtenances, a situation they have blamed Nigerian negotiators might have allegedly shortchanged the federal government.
The projects for both countries have striking similarity, though construction work in the ones proposed by Hon. Minister Ghartey in Ghana is yet to commence.
“On completion, the proposed railway line in Ghana will run through designated stations, including the terminals at Aflao and Elubo.
When President Nana Akufo-Addo administration came to power three years ago, it determined to pursue a programme of infrastructural developments throughout the country, particularly in the rehabilitation and/or construction of the country’s moribund railways infrastructure.
“In addition to the rehabilitation and construction of the 560 km Eastern Region railway line, the Government plans to establish Assembly Plants in at least two regions of Ghana for the building of locomotive coaches and wagons that would constitute the rolling stock for Ghana Railways in the future,” the findings revealed.
The Minister of Railway Development, Joe Ghartey, Mr. Dou Yisuo representing CRCC and Mr. Henry Djaba Jnr, the Managing Director of Lakeland Group of Companies, who are the local content partners of CRCC, all agree that the construction of the Assembly Plants will involve the investment of over a billion US Dollars in Ghana over the period of construction of the Assembly Plants.
Chartey hailed the benefits of the planned Assembly Plants to include employment of Ghanaian engineers and others as a welcome boost to the country’s economy. Whereas in Nigeria the clamour for improved local content has largely fallen on deaf ears,only an insignificant number of local engineers are involved in the project execution.
In several meetings held by the trio recently regarding the funding of the construction project, CRCC did confirm to Hon. Joe Ghartey, that they are ready to mobilise to site.
It was discovered that as a result of the understanding with Ghanaian Government, CRCC will fund the railway projects.
“Besides CRCC, Sinochem, another Chinese company is one of the largest oil companies in China, and is equally prepared to provide up to $3 billion as funding of railway construction projects throughout the country, backed by Crude Oil futures.”
Joe Ghartey, Ghana’s Minister of Railway Development who paid a courtesy visit on Rotimi Amaechi, the immediate past Nigeria’s Minister of Transportation, his Nigerian counterpart inspected and assessed the railway construction projects completed and currently undertaken in Nigeria by the Chinese conglomerate.
