FG reneges on controversial MOU with UK firm
The Federal Government has clarified the recent Memorandum of Understanding between the Ministry of Transportation and MPH Rail Development Limited, a United Kingdom-based construction corporation.According to the government, the agreement is not legally binding.
This follows previous claims that the FG signed a Memorandum of Understanding with an “unknown” firm.In a story, several social media users denounced the ministry for signing an MoU with a newly created firm, as records revealed by the article suggest the company was founded on September 26, 2019.Some labelled the scenario as another “P&ID saga in the making,” alluding to the high-profile contract dispute between Nigeria and P&ID, a British Virgin Islands-based corporation.According to Punch Online, the Ministry of Transport has signed a Memorandum of Understanding with MPH Rail Development Limited, a UK-based corporation.
This collaboration seeks to carry out the Port Harcourt-Enugu-Calabar-Abuja Standard Gauge Rail Line project using a public-private partnership model.The UK corporation will handle the design, building, commissioning, operation, and final transfer of the Port Harcourt-Enugu-Calabar-Abuja Standard Gauge Rail Line under the conditions of the Memorandum of Understanding.
According to the ministry, the Infrastructure, Concession, and Regulatory Commission issued a compliance certificate and cleared the Outline Business Case before signing the MoU.However, the ministry provided justifications in a statement on Sunday that Olujimi Oyetomi, the ministry’s Director of Press and Public Relations,signed.
By Nnaemeka Odenigbo
