By Stella Enenche, Abuja
The Federal government has announced the commencement of the commercial services on the 62.0 kilometers of the Port-Harcourt to Aba rail project.
The Minister of Transportation, Senator Said Alkali performed the flag off on Tuesday, 30th April 2024, according to a statement signed on behalf of the Director, Press and Public Relations, Muhammad Zakari.
The project was awarded by the Federal Ministry of Transportation to Messrs China Civil Engineering and Construction Company (CCECC) on October 16, 2020, with a completion timeline of 36 months.
Due to several technical and contractual issues, the project commenced in March 2022. It is worthy to note that the scope of the project covers the rehabilitation of the existing narrow gauge railway line, construction of new modern stations, and procurement of new modern rolling stock.
The railway line will also link the ports of Onne, Bonny, and Port-Harcourt to facilitate evacuation of goods and sundry freight through the Eastern corridor.
The Federal Government in the contractual agreement is to provide 15% of Direct Construction Cost inclusive of land acquisition and Value Added Tax (VAT), while a bank loan through Direct Construction Cost is to cover 85% of the project.
Facilitation of the bank loan is in progress and is expected to be concluded soon.
Thus, the progress achieved on project from inception in 2020 to the present date has been funded exclusively from the yearly budgetary allocation of the Federal Ministry of Transportation.
The Federal Government with the commencement of operations along this section of the project aims to boost economic activities between the South-South and South-East region of the country pending completion of the other sections of the project.
According to the statement, ” With the completion of the rehabilitation of Port-Harcourt to Aba rail corridor, the Ministry will continue to vigorously drive Messrs CCECC towards the speedy completion and delivery of the 181 kilometres Aba-Enugu stretch.
“Commencement of operations on this stretch of the project aligns with priority 5 of the President Bola Ahmed Tinubu’s Presidential Priority Areas which identifies “Enhanced Infrastructure and Transportation as Enablers of Growth” to the economy”, the statement said.
