Kano-Maradi Rail: Amaechi Meets German Financing Advisory

*Visits Mota Engil Rail Site in Portugal

Kasim Sumaina in Abuja

The Minister of Transportation, Mr. Chibuike Rotimi Amaechi, yesterday met with the German financing advisory for the construction of the Kano-Maradi rail line.

The move was expected to speed-up the process to ensure construction begins as soon as possible.

Amaechi, in the meeting held at the Nigerian Embassy, Berlin with representatives of KfW-IPEX bank of Germany who are serving as advisory in partnership with African Finance Corporation for the Kano-Maradi rail project, stated that the ECAs (Export Credit Agencies) are free to come to Nigeria and become part of the process on ground to ensure that everything follows their recommence practices and avert hiccups in the course of the project.

Following their concerns on resettlement to villages that may be impacted by the construction, Amaechi assured that Nigeria had laws in place for that, adding that the Ministry of Transportation ensured that the right of way was distant from the villages except in Kano where it is difficult to totally avoid the town.

The Minister in a statement in Abuja by the Director of Press Ministry of Transportation, Mr. Eric Ojiekwe explained: “For us in the Ministry of Transportation, in choosing the right of way, we avoided communities. If we don’t do that, we’ll clear the entire Kano.

“Like in Lagos, we avoided communities and used the old line, because if we had to choose a different route we would pay billions. In fact, to even work from the old line, we paid 7 billion naira in compensations, not because the people had the right to the land, but because after 12 years and nothing is done it becomes their land and you just can’t chase them out. We still paid compensation, because the rail line was moribund. To eject them we still had to treat them as though they were the original owners of the land. We didn’t wait for Europe. That’s our law.”

He added in Kano-Maradi, “we also took into consideration the people, we choose the right of way distant from the communities, which makes it even more expensive, because government will have to do access roads from the rail line into the communities.

“We did that because of environmental issues, but the Europeans want us to assume that there are people living along the route. There are none, apart from Kano.

“I don’t know what the law is in Europe in terms of your ESIA. We have taken the first step by giving notice, we have assessed the land. What we have not done is payment, because the payment is tied to the contract. On our part, we are ready. What I want to know is the next step to paying compensation, to know that the project is going on and that we can create employment.”

Similarly, the Managing Director/Global Head, Aviation Mobility and Transport, KfW-IPEX Bank, Dr. Carsten Wiebers, expressed belief that the Nigerian government would be able to manage the risk with pay back of the loan.

He advised that the process of putting in place the consulting firms for the project should be sped-up to facilitate financing, while documentation of the process should be properly done.

According to him, “Given the fast timeline of 15 months, I would recommend speeding up the process of putting in place the consulting companies and other terms of references are met to facilitate the financing. Of course the first level of requirement is your national regulation and law. You take care of that.

“What we are trying to do is create a bridge between your interests and the demands of the Export Credit Agencies, to guarantee we get an affordable loan for you. There has to be evidence of the working group in the areas where the rail would be (actual site) all the way to Kano to convince the decision makers of the ECAs.”

Continuing, Wiebers said: “Personally I’m comfortable with your timeline. You dictate the speed of the construction with Mota-Engil. There needs to be an international representative on the site to avoid hiccups with the ECAs. The problem I think is documentation and communication. The process needs to be properly documented and certified.”

On his part, the Director, Mobility and Transport, KfW-IPEX Bank, Sylvia Sedlacek, assured that a consortium of consultants were already working on the ESIA and would come up with the report soon, adding that a working group has been formed and is in talks with the Nigerian Ministries of Environment, Transportation and Housing on the Environment and social study of the area.

Earlier, Amaechi with a team from the Ministry and officials of the Nigerian Embassy in Portugal toured a major rail project site by Mota-Engil to ascertain their capacity to construct the Kano-Maradi rail within the stated timeframe of 15 months.