Posted by By Moses Ebosele on
AN Inter-ministerial Federal Government delegation will depart Nigeria for China today to negotiate N260 billion ($2 billion) bilateral loan to rehabilitate, reconstruct and develop the ailing Nigerian Railway Corporation (NRC).
AN Inter-ministerial Federal Government delegation will depart Nigeria for China today to negotiate N260 billion ($2 billion) bilateral loan to rehabilitate, reconstruct and develop the ailing Nigerian Railway Corporation (NRC).
The delegation under the leadership of the Minister of Finance, Dr. Ngozi Okonjo-Iweala, is expected to hold detailed negotiation with senior Chinese government officials within the one week duration of the visit.
Other members of the delegation include Transport Minister, Chief Abiye Precious Sekibo, Minister of Justice, Chief Bayo Ojo, Communications Minister, Chief Cornelius Adebayo, Minister of Power and Steel, Senator Liyel Imoke and the Managing Director of NRC, Alhaji Abdulraham Abubakar.
Abubakar at an interactive session with journalists at the weekend, explained that the move was part of the Federal Government resolve to energise the sector in 2006.
The Guardian had reported exclusively in September last year that the Federal Government was shopping for N396 billion ($3 billion) to reposition the NRC.
Under the arrangement, the Federal Government is to provide N130 billion ($1 billion), while the balance of N260 billion ($2 billion) will be realised as "grant loan from the Chinese."
Also, the minister of special duties has been directed to provide money from the Ecological Fund for the rehabilitation of the Gombe-Ashaka wash out portion.
Abubakar, who was accompanied by some directors and Lagos District Manager of the corporation, Fedet Okhiria, commended President Olusegun Obasanjo for his effort to reposition the sector.
Speaking further, he said request for a bilateral loan from China was not an indication that the Federal Government has contracted the rehabilitation work to China, adding that "all staff are encouraged to rededicate themselves in the current effort by management to reposition the NRC in 2006 and beyond," said Abubakar.
He continued: "The survival of the Railways is very important because whether one is a serving staff or pensioner, the benefits derivable can only be sustained when the NRC is alive and well.
"All hands must therefore, be on deck to see the Railway through the years ahead.
"Management has expressed deep appreciation to Mr. President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria on your (workers) behalf through the Board and the honourable Minister of Transport, for his renewed determination to rejuvenate the corporation and give Nigerians a railway of their dream," said Abubakar.
The move by the Federal Government to secure the $2 billion from China is coming barely 10 years after the late Gen. Sani Abacha administration awarded N50 billion contract for a similar exercise.
In December 2003, authorities of the NRC gave further insight into how the N50 billion rail contract wrecked the parastatal.
Also, in 2003, some engineers of the parastatals appealed to the Federal Government to phase out no fewer than 50 Chinese locomotives, which formed part of the contract.
The locomotives, worth N12 billion, according to the engineers have spent more time in the corporation's workshop than on the track.