The Ministry of Transportation has stated to address recent social media discussions regarding the selection of the Port Harcourt-Calabar-Enugu-Abuja rail project with Messrs. MPH Rail Development (UK) Limited.
According to the statement signed by the director of press and public relations, Olujimi Oyetomi the ministry aims to set the record straight regarding the memorandum of understanding (MoU) signed on February 12, 2024, by the Minister of Transportation, Sen. Said Alkali, on behalf of the ministry with messrs. MPH Rail Development (UK) Limited, a United Kingdom-registered company with Nigerian and foreign shareholding.
The statement clarified that the MoU is a non-binding agreement that outlines each party’s intentions and provides a platform for further discussion and engagement. It emphasises that the MoU does not create a legal or contractual obligation for the Federal Government.
The MoU stemmed from an unsolicited proposal presented by the British African Business Alliance (BABA) to achieve 100 per cent private sector funding for the project without loans or debt to the Nigerian government or its agencies. The Infrastructure Concession and Regulatory Commission (ICRC) approved the proposal on December 27, 2023, after a thorough review process.
MPH Rail Development (UK) Limited, as the special purpose vehicle (SPV), is tasked with delivering the project. The ministry highlights the importance of the 90 days for MPH to submit crucial documents, including evidence of commitment by potential financiers and environmental impact assessments, for further evaluation.
The ministry reassures the public that the MoU represents the beginning of a rigorous process, overseen by the ICRC, to ensure transparency and accountability. It underscores its commitment to realising the ‘Renewed Hope’ agenda of efficient and sustainable transport infrastructure for Nigeria.
In conclusion, the ministry urges the public to disregard any misconceptions surrounding the MoU, emphasising that it is not a binding commitment from the Federal Government but rather a step towards potential collaboration for the benefit of the country.
