South-South states push economic integration with N6trn Benin-Calabar rail project

…to be financed by development bank, PPP

A rail project, starting from Benin, Edo State passing through Port Harcourt, Rivers State to Calabar, Cross River State, is now under construction by six South-South States, otherwise known as BRACED States, meant to drive logistics, regional integration and socio-economic growth and development of the Region.

The rail line being proposed by BRACED States of Bayelsa, Rivers, Akwa Ibom, Cross River, Edo and Delta is designed to be partly financed by soon-to-be operational National Development Bank of Nigeria (NDBN), a development Bank purposely established to support the regional development through its partmership with Regional Commissions.

When launched in the last quarter of the year, South-South Region will be the first Centre to be established after the National Headquarters of Development Bank of Nigeria (NDBN) in Abuja, while others may be located in different regions.

The plan aimed at integrating the South-South Region through an interconnected rail network was unveiled at a closed- door two-day strategic meeting of the Investment Promotion Agencies of the BRACED States which was declared open in Port Harcourt, Rivers State, on Wednesday.

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In a special report delivered by Kalada Apiafi of Wider Perspectives Ltd, the rail project is now at feasibility studies’ stage, away from mere proposition. The report will be taken to BRACED Commission and to the Six South-South States’ Governments.

Going by other rail lines so far constructed in Nigeria before the latest inflation surge, the BRACED rail project may require far more than $4 billion or over N6 trillion.

This is because one Kilometre of rail cost between $4.6 million to $9.8 million, depending on topography and terrain. Hence, the BRACED States are considering public-private partnership to achieve the rail construction.

The East-West Road is about 400km from Benin to Calabar, so the rail line may even be longer because of plans to send a burst to Onitsha on the Western flank and to Onne Port in Port Harcourt and to Ibaka Sea Port in Akwa Ibom as well as to Cocoa and Honey zones of Ogoja to promote exports, according to promoters of the project.

Apiaffi explained to the strategic panel that the project had reached critical planning stage and that the proposition had received the warm embrace of the Federal Ministry of Transportation who may help secure funding.

He said the feasibility study was necessary because it would answer critical questions as cost of project, right of way (ROW) issues, technical questions, financials, likely sources of funding market demands, goods for freights, plus environmental and social questions to avoid crisis or community problems. “It will do a lot on risk analysis”, he stated.

He said the project is being pushed by a consortium behind Wider Perspectives Ltd, and the final package (proposition) would be submitted to the BRACED Commission.

“The project must be done, even if not by the present set of governors. Thank God all the governors in the Region are now in same political wagon”, he noted.

Throwing some light on the prospects of the South-South Centre of the upcoming National Development Bank of Nigeria (NDBN), Fidelis Egueke, an official of NDBN, said the first Centre of NDBN would likely come to the South-South because of its combined strength as resource base of Nigeria with over 75% of hydrocarbon economy from the Region.

He said the zone had been indicated as the second biggest, an economic hub of $65.9bn, ranked with some Countries in Africa, bigger than Cameroon ($59Bn) and others such as Libya, and second to DR Congo ($73.5bn), referring to a presentation from Bayelsa State team lead, Patience Ranami Abah.

He said such facts would help to make a strong case for the South-South in the NDBN, saying the bank would help fund industrialisation of the regional economic development Commission.

He urged the BRACED States to walk faster because other regions are working very hard.

Earlier, Joe Keshi, Director-General of the BRACED Commission, showed what he called undeniable opportunities such as expanding energy and petrochemical industries, unlocking the promise of agriculture and agribusiness, promoting tourism, building tech hubs, and improving ports and transportation network.

Chamberlain Peterside, Chairman of the roundtable, who is the Director-General of the Rivers State Investment Promotion Agency (RSIPA), said BRACED began with promising prospects but was knocked to sleep by political developments after successful economic summits in Calabar (Cross River State) and later in Asaba (Delta State).

He said the coming into existence of RSIPA has led to realisation that some big ticket projects being suggested for Rivers State require collaboration of neigbouring States, thus reaffirming need for revival of the BRACED States.