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Amaechi Blasts Nigerians Misinterpreting ‘Waiving Sovereignty’ In $500m Chinese Loan

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Minister of Transportation, Rotimi Amaechi, has lambasted Nigetians didn’t understand that the clause ‘waiving sovereignty’ in the loan agreement between Nigeria and China is only a contract term.

According to the Minister, the clause is a sovereign guarantee that assures payback according to the terms and conditions of any loan.

Amaechi made the clarification while answering questions about the loan controversy on a TV programme, monitored by Grassroots.ng.

He argued that the Ministry of Transportation is only responsible for implementing projects and not taking loans

According to Amaechi, “it is a commercial agreement; a trade agreement between Nigeria and China. The first issue is that the Ministry of Transport does not take loan. Anything about loan, talk to Ministry of Finance.

“What I signed is what they call commercial contract; that is contract between the Federal Government and CCECC as a contractor.

“The contract between Nigeria and China is usually signed by the ministry of finance on behalf of Nigeria, but that will be escaping the issue.

“Whether it is the Ministry of Finance that signed it or the Ministry of Transport, the issues are the issues.

“There is no contract without an agreement and that agreement must contain some terms and one of the terms that this one contains is not that you’re signing away the sovereignty of the country.

“No country will sign away its sovereignty. What you do is, you give a sovereign guarantee; and I’m ashamed of those who interpret it the wrong way.

“Now, when you say ‘I give you a sovereign guarantee and I waive that immunity clause’, the immunity clause is that if tomorrow I’m not able to pay you and you come to collect the items that we’ve agreed upon (that these are items I have put down as guarantee), I can use my immunity and say no, you cannot touch our assets, we are a sovereign country.

“Is China our father that will give us money for free? They (the Chinese) are saying, if you are not able to pay, don’t stop us from taking back those items that will help us recover our funds.

“And it’s a standard clause, whether it’s with America you signed it or with Britain or any country, because they want to know they can recover their money.

“What the clause does is to say to you, I expect you to pay according to those terms and conditions. If you don’t pay, don’t throw your immunity on me (the lender) when I come to collect back the guarantee you put forward, that’s all.

“The waiving of immunity simply means in trade parlance that I’m not giving you this loan free.

“Just like if you go to take a loan from the bank, the moment you don’t pay, they go after the assets you put down. And people are politicising it. The Chinese can never come and take over Aso rock and become President or Minister.

“In the event of a default, Amaechi stated that the lender can only go after, and take back the same assets built with the loaned funds.

“And if the assets you put down become depreciated, then you negotiate which assets they can go after. The Chinese will never take over what was not constructed with the loan.”

Zambia’s fate fear

Allaying the fear of some Nigerians asking if it’s possible to repay the loan and not get into the same situation as Zambia, Amaechi stated that the loan was already being repaid.

“But we’re paying,” he said. “In the same National Assembly committee sitting, they were told that out of the 500 million dollars, we’ve paid 96 million dollars already.

“Nigeria is already paying. So, it’s not that Nigeria doesn’t have the capacity to pay back. We’ll pay back. At 2.8 percent, what other country would give you that loan? 2.8 per cent for 20 years with seven years moratorium; why can’t you pay back?

“The repayment plan is not done by us, it’s done by the ministry of finance, but they are meeting the requirements. At any point in time that we need to pay, we pay.”

The Minister further explained that the loans are not paid to him nor the Ministry, which automatically eliminates any fear of corruption or diversion of funds. They are paid directly to the contractor in China.

Amaechi also reiterated his call to the National Assembly to put a hold on the probe as some loans are still being expected for the completion of Lagos to Ibadan and the construction of Ibadan to Kano and Port Harcourt to Maiduguri rail.

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Transport

Federal Government To Launch Out 2700 CNG Buses, Tricycles Ahead Of First anniversary Of Tinubu’s Administration

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The Presidency on Sunday said it was ready to launch about 2,700 CNG-powered buses and tricycles before May 29 when President Bola Tinubu turns one year in office.

“All is now ready for delivery of the first set of critical assets for deployment and launch of the CNG initiative ahead of the first anniversary of the Tinubu administration on May 29.”

It said the Federal Government is set to deliver 100 conversion workshops and 60 refuelling sites spread across 18 states before the end of 2024.

The Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, revealed this in a statement he signed Sunday titled ‘Presidential CNG initiative set for rollout.’

“From the end of May, Nigeria will take some baby steps to join such nations that already have large fleets of CNG vehicles.

The CNG tricycle
The CNG buses

“All is now ready for delivery of the first set of critical assets for deployment and launch of the CNG initiative ahead of the first anniversary of the Tinubu administration on May 29.

“About 2,500 of the tricycles will be ready before May 29, 2024…working towards delivering 200 units before the first anniversary of the Tinubu administration,” said the Presidency.

He also said that over 600 buses are targeted for production in the first phase which will be accomplished in 2024.

In October 2023, about five months after the removal of the petrol subsidy, President Tinubu launched the Presidential CNG Initiative to deliver cheaper, safer and more climate-friendly energy.

The CNG Initiative was designed to deliver compressed natural gas, especially for mass transit.

The Federal Government earmarked N100bn (part of the N500bn palliative budget) to purchase 5500 CNG vehicles (buses and tricycles), 100 Electric buses and over 20,000 CNG conversion kits, with plans to develop CNG refilling stations and electric charging stations nationwide.

The FG had said the initiative would ease the burden of the increased pump price on the masses.More information added that the creation of a new plant on the Lagos-Ibadan Expressway that will assemble the tricycles while Brilliant EV will assemble electric vehicles when it receives the Semi Knocked Down components.

The Presidency explained further, “The SKD parts manufactured by the Chinese company LUOJIA in partnership with its local partner to support the consortium of local suppliers of CNG tricycles are set for shipment to Nigeria and expected to arrive early in May.

It is expected that before 2027, There’ll be a considerable wave of these buses and tricycles in use.

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Transport

Lagos State Governor, Babajide Sanwo-Olu Unveils First Set of Electric Buses In Lagos

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The Governor of Lagos State, Babajide Sanwo-Olu, has announced the first set of electric buses for the state’s mass transit scheme.

Sanwo-Olu announced this on his Instagram page on Sunday, as he shared pictures of the buses.

He partly wrote, “I am excited to announce the first set of electric buses in the Lagos Mass transit master plan as part of our increased effort to modernise every sector of Lagos.

“Thanks to our partnership with #Oando_PLC, Lagosians can expect a cleaner and greener public transportation system.

“With the ability to travel 280 km at full charge, taking into account our unique travel times in Lagos, our electric buses are a game-changer.”

Here are pictures of the electric bus.

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Transport

Federal Executive Council Approve the sum of N453.90bn for Kano Rail Line under construction

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The Federal Executive Council has approved the sum of N453.90bn for the procurement of rolling stock, operation and maintenance equipment for the Kano-Maradi standard gauge rail line currently under construction.

The Minister of Transportation, Mu’azu Sambo, disclosed this to State House correspondents on Wednesday, March 22, after this week’s Council meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

The approved sum also includes N510.93m meant for procuring four customised fire service/search and rescue vans in seaports at Port Harcourt, Lagos Port Complex, Tincan Island port and the Marina headquarters of the Nigerian Ports Authority.

The 248km rail line will traverses Kano, other cities such as Kazaure in Bauchi State, Daura and Mashi in Katsina State; Dutse in Jigawa State, the border town of Jibia, before terminating in Niger Republic’s trade and agricultural hub of Maradi.

According to a former Transport Minister, Rotimi Amaechi, the line has 15 stations along its path with a forecasted daily traffic of 9,364 passengers and approximately 3000 metric tons of cargo.

However, the project has been fraught with resistance, especially from lawmakers.

However, on Wednesday, Sambo said: “The memorandum sought council’s consideration and approval for the award of contract for the procurement of rolling stock, operation or maintenance equipment for the Kano-Maradi standard gauge rail line that is currently under construction.

“The contract was awarded to MSSRs Mota-Engil Nigeria Limited, who are the contractors handling this particular project in the sum of $984,722,302.5 inclusive of seven and a half per cent VAT with a completion period of four years.”

Sambo also revealed that the Transport ministry presented another memo on behalf of the Nigerian Ports Authority “for the award of contract for the construction and supply of four customised Fire Service search and rescue vans for extrication of accident victims for Rivers Ports in Port Harcourt, Lagos Port complex, Tincan Island Port and the Marina headquarters of the NPA, all in Lagos.

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