Nigerian railway projects underway Project Cost Distance
Port Harcourt - Makurdi (Lot 1) Naira 19bn
Kuru - Maiduguri (Lot 3) Lagos - Ibadan
(standard gauge)
Itakpe - Ajaokuta - Warri (standard gauge)
Lagos - Jebba - Kano (1067mm-gauge)
Naira 23bn
(standard-gauge double track) /$US 1.49bn Abuja - Kaduna
$US 211m Naira 24bn
Naira 243bn/ $US 875m
Contractor 463km Eser West Africa
Makurdi - Kuru, branches to Naira 24.45bn 554km China Gezhouba Jos and Kafanchan (Lot 2)
640km Lingo Nigeria Naira 229.5bn 360km CCECC 186km CCECC 320km Julius Berger
1126km Costain West Africa (Jebba - Kano 640km)
Projects at feasibility stage (all standard gauge) Project
Lagos - Shagamu - Ijebu-Ode - Ore - Benin City Eganyi - Lokoja - Abaji - Abuja
Approx. distance Budget 2013 300km 280km
None
Benin - Agbor - Onitsha - Nnewi - Owerri - Aba, with additional line from Onitsha - Enugu - Abakaliki 323km Lagos - Ibadan - Oshogbo - Baro - Abuja
Benin - Sapele - Warri - Yenagoa - Port Harcourt - Aba - Uyo - Calabar - Akampa Ikom - Obudu Cattle Ranch
congestion problems in cities such as Lagos (IRJ June p32), investment in passenger services might rationally focus on urban mass transit rather than trophy schemes for new inter-state or inter-city lines. Indeed in addition to the long-distance schemes already mentioned, a significant emphasis is being placed on improving commuter links following the successful launch of the 23km Maiduguri-Duwari Mass Transit Train Service (MTTS) in 2011. This has been followed by improved services in Lagos which are now carrying 15,000 passengers per day, and new services in Jos, Jano and Kabuna, while plans remain in place for a diesel light rail service in Abuja.
Expertise and regulation
A key issue facing PPP projects in Nigeria is a lack of an extensive and readily available base of local expertise which is able to consider a project’s legal structures and context with a detailed and nuanced understanding of the issues it is likely to encounter. PPP structures in developing countries are often brought in from outside, with project teams dominated by international advisory practices. However, this process often overlooks the need to develop local
IRJ July 2013
Naira 76.8m Naira 230m
Ajaokuta (Eganyi) - Obajana - Jakura - Baro - Abuja 360km Zaria - Kaura Namoda - Sokota - Illela
896km 640km
Naira 192.1m Naira 76.8m Naira 221.2m
Not known Naira 153m Not known None
understanding of and involvement in the project which, after all, is intended to make a real and durable contribution to economic development in the host country. As a result there must be a strong case for focused and effective professional training and education to build on the locally available pool of legal expertise. In Nigeria, a key role has been given to the Infrastructure Concession Regulatory Commission (ICRC). Inaugurated in 2008, the ICRC’s measures have included a project in partnership with the World Bank Institute of Public Private Partnerships to improve the disclosure of PPP contract provisions. As well as providing transparency
and promoting value-for-money, its objective, set out in April, is to “educate Nigerians on the salient features of the contract, agreed standards of service and the actual performance levels achieved.” The statement underlines that disclosure of performance indicators with their targeted levels can help put pressure on providers to perform well.
As users become more
knowledgeable about the contracts through regular disclosure of information, service provision through PPP procurement will gain greater
Group Corporation }
Completion Budget 2013 End of 2013 Naira 1.2bn Not known Naira 8.6bn Not known Naira 3.57bn End of 2013 Naira 4.1bn plus
Naira 1.4bn for signalling and telecoms equipment
In service CCECC (Lagos - Jebba 486km)
acceptance in the country. However, the need to articulate this objective is a clear indication of the difficulties that lie ahead of the Nigerian government as it strives to achieve its goals for its railway network.
While the emphasis at present is on
rehabilitating infrastructure, insufficient attention has been paid to establishing conditions attractive to prospective concessionaires. A lack of rolling stock is the most obvious hindrance to the effective operation of services with no standard-gauge assets available or even ordered despite the commitment to build 866km of new infrastructure at a cost of Naira 708.2bn.
This equipment cannot be procured overnight, with orders taking on average two years to complete. Likewise identifying a suitable private operator can take a similar amount of time, particularly given the prospective difficulties and costs of operating in Nigeria. The fact that the steel plants on the Itakpe - Ajaokuta - Warri line are currently not in operation indicates that existing conditions are not exactly conducive to attracting a private operator looking to make a profit. Greater emphasis should now be placed on passing the draft Railway Bill which is intended to provide the legal framework necessary to attract private capital, and the operators, that will enable a revamped and revitalised network to fulfil its potential. While its commitment to invest in infrastructure is commendable, without a strategy that will deliver the effective railway services the revitalised network is designed for, Nigeria’s government will simply be unable to shed the aura of mismanagement that plagued NRC’s previous operations until they eventually ground to a halt. IRJ
25 Naira 1.4bn, 700m for Lagos - Jebba, Jebba - Kano
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