The China Civil Engineering and Construction Company (CCECC), which is accused of failing to deliver an 85 percent counterpart fund for the rail project in several regions in Nigeria, has been threatened with harsh sanctions by the federal government.
Muazu Sambo, the minister of transportation, bemoaned the sluggish progress on the train lines connecting Port Harcourt, Maiduguri, and Kanu.
Sambo gave the warning on Saturday while briefing journalists in Lagos at the conclusion of a tour of the Lekki Deep Seaport to ascertain the extent of work completed so far.
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Remarks on the Rail Project
Sambo, who expressed displeasure at the Chinese company’s behavior, claimed that two years after the contract was signed, CCECC had not contributed any of its 85% counterpart funds to the rail project. He claims that the contract states that CCECC will pay 85% of the costs, with the federal government covering 15%.
He stated, “I’ve given them until October 2022 to carry out their own obligations under the agreement; otherwise, harsh sanctions will be imposed on them.
“How could it be said that CCECC has not provided a dollar two years after the agreement was signed?”
Remember that Rotimi Amaechi, a former minister of transportation, had urged the contractor to fund the rail project in March. He accused them of engaging in political games with the Kanu-Kaduna rail project.
Amaechi had stated, “The pace is exceedingly slow, the equipment are meant to be 2,000 plus, but what they (CCECC) have brought so far is 541. They claim that over 300 pieces of equipment is in Kaduna. I’ll send people to investigate. Even if you sum it all up, you will only have 800 pieces of equipment. That implies that there is a problem somewhere.
“I am aware that they (CCECC) assert there is no funding available for them. But what about their promise to look for the money in the contract?
“CCECC has not brought any money, and the Chinese have stopped providing financial aid to us for over three years. Therefore, CCECC cannot afford to put off its duty to find funding for the rail project. The Chinese must take that action.
