How report on Nigeria railway contract forced Ghana to end MoU with CRCC-Nigeria

Ghanaian’s Ministry of Railways Development in Accra has pulled out of its agreement with the China Railway Construction Corporation (international) Nigeria Limited.

Consequently, the ministry has pulled out of the memorandum of understanding (MoU) earlier signed in March 2019, with the China Railway Construction Corporation (international) Nigeria Limited on account of alleged breach of confidentiality.

The sudden withdrawal from the MoU, it was gathered, was triggered by an online publication, which claimed that CRCC wants to construct 560 kilometre railway line for $2 billion – the same cost as 156 kilometre Lagos–Ibadan rail.”

In a letter signed by the Ghanaian’s Minister of Railways Development, Mr. Joe Ghartey, and addressed to the Managing Director of CRCC-Nigeria, released to newsmen in Lagos, on Tuesday, he decried the media report, saying it contained “a lot of factual inaccuracies.”

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Besides, he said the picture attached to the publication was from an event that was not related in any way with engagement with CRCC-Nigeria, represented by its Managing Director, Mr. Dou Yisup.

For these infractions, Ghartey said the Ghanaian authority does not want to proceed with the relationship between the parties, as established by the non-binding MoU.

The MoU was signed by the officials of Ghanaian’s Ministry of Railway Departments and Messrs CRCC.

Admittedly, Ghartey said that it was true that Messrs CRCC-Nigeria expressed interest in supporting the ministry to develop and modernise Ghana’s railway network, particularly the Trans-ECOWAS line, which runs along the coast between Aflao, on the border with Togo, and Elubo, on the border with Cote d’Ivoire.

According to Ghartey, the purpose of the MoU was for CRCC-Nigeria to undertake feasibility studies through the use of independent consultants, and added that the company was responsible for verifying the project cost as estimated by the feasibility studies and also raised capital to finance the project.

He said: “CRCC-Nigeria has not submitted any report of the feasibility studies to the Ministry of Railways Development, let alone the project cost estimate,” adding that the ministry has not received any offer from CRCC-Nigeria for the construction of the proposed Aflao-Elubo railway line and that it is yet to respond to a proposal by CRCC to establish assembly plants for the building of locomotive coaches and wagons.

“Each party agrees that the terms of MoU and all previous and subsequent discussions, documents and information exchanged pursuant to or otherwise related hereto will be treated in confidence and will not be disclosed except as required by law and otherwise.

“The Ministry of Railways Department therefore does not intend to proceed with the relationship between the two parties as established by the non-binding MoU.”

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