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Federal Government and UK Company Agree to Construct Port Harcourt–Abuja Railway

The Ministry of Transport has entered into a Memorandum of Understanding (MoU) with Messrs MPH Rail Development Limited, a UK-based company, to undertake the Port Harcourt–Enugu–Calabar–Abuja Standard Gauge Rail Line project through a public-private partnership arrangement.

This agreement was announced in a statement released on the ministry's website on Friday.

According to the MoU, the UK firm will oversee the design, construction, commissioning, operation, and eventual transfer of the Port Harcourt–Enugu–Calabar–Abuja Standard Gauge Rail Line.

The ministry clarified that the signing of the MoU followed the approval of the Outline Business Case and the issuance of a compliance certificate by the Infrastructure, Concession, and Regulatory Commission.

With this clearance, Messrs MPH Rail Development Limited can now concentrate on assembling the required documentation for approval by the Federal Executive Council to proceed with the project.

The MoU signing ceremony between the minister and the management of Messrs MPH Rail Development Limited was graced by the presence of the Permanent Secretary of the Ministry of Transportation, Olufemi Oloruntola, alongside the Director of Rail Development, Zirra Fimbarr, and the Director of Legal Services, Pius Oteh.

During the ceremony, Minister of Transportation, Senator Said Alkali, pledged the full support of the ministry for the successful execution of the project.

He stressed the need for meticulous preparation and prompt submission of all necessary documents to facilitate approval from the Federal Executive Council (FEC).

The statement highlighted, "As part of the commitment to enhance the ongoing railway modernization projects in line with the Renewed Hope Agenda of the administration led by President Bola Ahmed Tinubu, Minister of Transportation, Senator Said Ahmed Alkali, has signed a Memorandum of Understanding on behalf of the Federal Ministry of Transportation with Messrs MPH Rail Development (UK) Limited. This enables the company to undertake the design, construction, commissioning, operation, and transfer of the Port Harcourt–Enugu–Calabar–Abuja Standard Gauge Rail Line under a Public–Private Partnership framework."

The ministry emphasized the necessity of key documents to advance the project, including a thorough feasibility study report, a comprehensive Business Case Study, an Environmental and Social Impact Assessment, the creation of a Resettlement Action Plan, and the establishment of a Financial Model. These measures aim to facilitate project implementation and ensure its transfer to the federal government under a Public-Private Partnership (PPP) framework without imposing loans or debts on the Nigerian government or its agencies.

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